You'll have to exercise your option to purchase, then enter escrow and get qualified to buy the property.

If most of them don't qualify for a regular mortgage, how do they exercise the option to buy?

That in only 1 person and I understand that is not a good sample, so take that for what it is worth.

Follow the rules, exercise your rights, ethics is a non issue.Next you need to understand that all decisions are business decisions not personal decisions.

This was a good exercise in research and due diligence, but I think I'll continue looking.

@John Leavelle I was using the 4-unit just an an exercise -- But should I only be using buildings of say 6 units and up? 

I could share a sample if you wish.

(2) Any sample language that has worked for you regarding nonrefundable option payment, that would be transferred at closing if sale goes through (or refunded, depending on how the deal works out,cash v. financing, etc).  

Ask if they can provide disposal service as well.You might also approach the local Fire Protection District and see if they'd want to burn it down as an exercise.

I put in a TB for 24 months and 4% consideration, giving me a few months to do something else if the TB didn't exercise.