Check for economic occupancy as well as physical occupancy - how many of the occupants are actually paying on time.Check into submetering the utilities through a RUBS system. 

(It is also free)  Aside from that prudent exercise, you (or someone else) could pull up the county record for the subject property and do some basic diligence on the mortgage to see where the balance might be today had all payments been made as agreed.  

I am pretty sure its been over a week since he has physically been here.

When the lease is singed I physically walk the property and explain what is what and what they need to do.ExamplesIf a cabinet knob is loose, get a screwdriver and tighten it.

In my market place 75% of options were not exercised, so 75% of the time the seller just rented out his property in effect while the investor pocketed some option money and the monthly rent spread.  

I would focus on making great deals - rather than trying to acquire an arbitrary number of properties.For an option to buy to be profitable, it has to be significantly below the purchase price and you have to have the down payment to exercise the option - which would be 25% of the option price on most loans.The margin is needed because you have realtor/marketing/carrying costs if you buy and flip. 

(makes sure you get a physical 10% off coupon).

If you reverse engineer how money is made in real estate, the essential benefits are revealed:1) Use2) Profits3) Growth4) Income5) Management6) Amortization7) Tax benefitsNow, look at real estate from the satellite view and the effect of time:Growth, speculation, cresting, decline, blight and ghost town.Until people had a way to connect with others, they needed to be physically close to the employer that created the employment or the crops or industry that generate cashflow and profits. 

Deals would need to be profitable enough to be able to justify someone to do all the physical inspections, manage rehabs, etc.

That construction agreement may not be valid without a license.Forget any construction financing, you can't give the property as collateral.If suppliers extend credit for materials, they will generally want the address and owner to sign or a licensed contractor with a valid construction agreement allowing liens to be created.You can file your option and cloud title, but that cloud doesn't prevent an owner from selling the property subject to that option, the new owner will be obligated to sell it under the option, but if you fail to exercise it as agreed, they will own the place.