@Matt Finneseth   I am often amazed at the almost moral objection that some people express when this topic comes up. 

Gary, Youve expressed concerns about cost.

For example: A quotation by sub-contractor to the main contractor and an offer to lease.An offer does not include ballpark estimates, requests for proposals, expressions of interest, or letters of intent.An offer will lapse:when the time for acceptance expires;if theoffer is withdrawn before it is accepted; or after a reasonable time inthe circumstances (generally the greater the value of the contract, thelonger the life of the offer).AcceptanceOnly what is offered can be accepted.

In Georgia (the state where I'm licensed), you must either be a licensed broker or an unlicensed assistant to a broker in order to perform any of the following functions on behalf of a property owner: (A) Delivering a lease application, a lease, or any amendment thereto to any person; (B) Receiving a lease application, a lease, or any amendment thereto, a security deposit, rental payment, or any related payment for delivery to and made payable to the broker or the owner; (C) Showing a rental unit to any person, provided that the employee is acting under the direct instructions of the broker, and executing leases or rental agreements; (D) Providing information about a rental unit, a lease application, or a lease; (E) Providing information to a tenant about the status of such tenant's security deposit or rent payments or to an owner about the owner's financial accounts and payments from the owner's tenants; and (F) Performing any ministerial acts that are explicitly authorized by the broker in a written agreement between the broker and the employee.

If is usually expressed as a percentage In this case it would be 7.4%~.

However I can always express my feelings for the law but at the end of the day I must do what is right in the laws eyes because I have not done anything wrong other then express my feelings I am not concerned.  

I would just express interest with him asap.

As far as drugs, I would deal with it in a non-curable breach of contract section such as: Non-Curable Breach of Agreement: Any of the following events will be deemed a non-curable breach of this Lease; (a) Police raid upon your Premises; (b) Your arrest for possession/sale/storage of any narcotic/controlled substance/chemical or herbal contraband in or about the Premises; (c) Failure topermit Owner's entry to the Premises following receipt of adequate notice; (d) Failure to cooperate with Owner or any pest controller/fumigator/exterminator following receipt of notice of such services; (e) Defaults by you causing Owner to serve more than two notices to pay or quit, in any twelve (12) month period; (f) A misrepresentation on your Rental Application; (g) Delivery of any security door/gate key to anyone not party to this Lease.

Long story short, there was a delivery clause of 30 days in the lease, so if we couldn't move in on the start date the landlord could enforce the lease for thirty days and hold us liable even though we weren't living in it.

Was expecting some more thoughts and insights around investing for appreciation.I guess my thoughts on this is slightly different than what's been expressed here.