From all the podcast that I have listened to I already knew that keeping an eye on them would be in my best interest so hearing it again reaffirmed that for me. 

You aren't assuming the loan, by the way, you need to get that vocab out of your vernacular, there's a difference between buying sub2 and assuming and these aren't assumable loans we're dealing with.I've never really have any direct contact with the bank unless I chose to.  I

In addition, if you’re looking at a bigger place- would consider who the clientele would be to rent it to. I

The 8% preferred you refer to is for guidance purposes.

What it comes down to is that unless he puts a deadbolt with key on the door, there is a chance someone would do that, so the only way to protect himself is to put it in the lease.  

Also, If I purchase Subject to I can refi at anytime correct?

Maybe this is what you were referring to -- I don't see how they can charge closing costs twice.I don't even look at their ARV numbers. 

I think that as the property owner, I should be able to have pets while not allowing the tenants to. I

The leads I am referring to is where the seller reached out to me.

A very cheap book and good introduction to lease options and subject-to, is Wendy Patton's book (I don't remember the name but it has lease option and subject-to in the title.)