I was a little confused, as I thought I could name myself as the statutory agent as i am handling everything.

We all have to deal with the risk in its various forms, depending on the investment, and you may not have the stomach for it- be it tenants, property managers or neighbors.I would get a handle on you finances with the "wealth management group" and see if you are really making out better then you would be managing your own wealth through indexes.

The way her and her sister have engaged with us during this process makes us think they have some knowledge of the system and rules and have experience handling landlords. 

4) Who will handle your evictions?

We plan to still use an agent for our purchase and let them handle that side of the transaction. 

I also handled the sale as the listing agent.

We have a property manager who handles cleaning, yard, and pools for a flat fee each month.

Lots of details here to consider so when you say how would I draft this up - there is a lot to consider but my thoughts:Rent = 1200/month3 yr option to purchase = $240,000not sure what state you are in but propose to handle everything (maintenance, repairs, etc and if that is not legal/possible you could do a Land contract or contract for deed with a  minor risk since he has an underlying mortgage).feel free to reach out and schedule a  call. seems like you have a fascinating one. 

The Sellers are retiring and the common sense kind of people - they run the operations and let professionals handle taxes, bookeeping, legal, etc.

Talk to a local independent insurance agent to learn more about how it is handled by the companies that are in your area.