If they decline or do not do it, either serve notice to end their lease, or modify your lease with specific language to address these things in the future. 

@Anthony Talarico JrWelcome to BP, and congratulations on making the decision to invest in your future via real estate.I have written a few blog posts that may help you get started here on BP, and with your investing.

I'm sure this will be nonrefundable, but it needs to go towards the future purchase of the property, preferably as part of the down payment.

@Kyle HarrisonWelcome to BP, and congratulations on making the decision to invest in your future via real estate.I have written a few blog posts that may help you get started here on BP, and with your investing.

Hope that the project(s) go well and the future does not hold any more Insurance snags.

You would find a deal and then put it under contract, stating a closing date of sometime in the near future, then you would find a buyer for that property they would give you a contract on the property for the same closing date.  

Unless your 9-5 career will be over anytime in foreseen future you are looking for something to do.

So, for example, if I wanted to make it as simple as possible meaning no balloon and no down, would this situation make sense:I purchase at $38000I set repayment period at 5 years based on a 50k future assumed price.I set an interest rate of 10 percent (these are all just hypothetical mind you)50/5 = 10k a year in payments from tenant10k @10 percent interest makes it 11k a year in payment11k/12 months = 917 a month So after 5 years, the house is theirs and I have made 17k (minus associated costs).

@Kelly A. prop 10 is so bad on so many fronts for landlords and future tenants that I cannot even comprehend all of the ramifications.  

In your opinion would it be a better strategy to invest passively in a market like Brooklyn which is appreciating very rapidly average returns of 10-20% cash on cash.Or to invest in low income neighborhoods in Philadelphia and buy 2 family houses making around 20%-30% but not much future growth.I like the idea of building my own portfolio but I have limited access to capital and I don’t want to have a lot of partners to worry about.Any insight would be greatly appreciated.Heshie