This way I can exercise my option and back out of the deal without losing my earnest money.

I don't think we are of competing market, but can you send me sample contract or how you structure your 50/50 splits?

Like Caroline, I'm leery of tenants offering upfront payment, granted my skepticism is based off a sample size of one.

Do you have an sample numbers to share based on any recent deals you have been involved with or seen?

Part of this exercise will be developing your strategy.  

Once you figure out your target property type and area, use the calculators on this site to analyze sample deals so you become very comfortable with your target price and know exactly what you are looking for so your emotion doesn't get the best of you....Good luck.  

This is a range I've seen based on a small sample size, but at least gives you a data point.3.  

@Scheryl McDavid  If you are really serious about buying a place and not just doing an exercise, you need way more information.

Currently I am looking for a good real estate focussed financial advisor to get started with.When I am not working I am usually cycling or other exercise, enjoying home theater, spending time with my girl.  

The best way to do it is to have a sample deal package that you can present to them and go over a sample investment opportunity.