Maintenance is delegated to the tenant/buyer that is legal and that is stated in the lease.Seller remains on the deed -it's still his-her property until the option is exercised.

This is an exercise in innovation.

I imagine the original note had an assignment of rents and when the owner had to reduce rents or had a vacancy, the bank exercised the assignment and the bank later sold the note to a note buyer, most likely for a discount.  

I could use more exercise anyway :)@Kenneth Reimer Good points to consider.  

John will be doing the remodeling to convert the garage and do the addition to bring it up to 10 beds for the residents.The way I understand and asked my attorney to draw the lease (I should be reviewing the draft within a week or so) is John can exercise the option at the end of the lease not prior.

After 24 months I will either assume 100% of mortgage cost or have to exercise my option and purchase the property for remaining mortgage balance.

Once you go through this exercise, it will become very evident to you which ones are the studs and which ones are the duds, cash flow-wise.

A good exercise that I did was to look at different analysis measures and make my own excel sheet.

I grabbed a couple addresses off Realtor.com and used it to find the BBL, but from my phone it seemed like a pretty pointless exercise. 

If IRS does not exercise its redemption right within the 120 days it will automatically expire.