I am a practicing licensed broker with a decent size business (LLC #1), however this rental property is within (LLC #2) which has a couple other rentals in it as well...so when you say "real estate professional" I am a little unclear if my "day job" as a broker would give me this title since this property pertains to LLC #2 and is my "rental job" which is passive income, not active.We've rented the property for 2 years as originally intended, but do the fire and renovations, plus the market being higher than I ever anticipated in this area, I want to get out what I can and roll the money into a better location via a 1031 tax exchange.Thanks again for all your input!!

He's shown his colors, so anticipate he will not honor other terms of the rental agreement too.

Given carrying costs and transaction fees, along with the amount of capital you would have to tie up, if you do not your anticipated ARV at sale you could be in trouble. 

I had anticipated being at 60%.

And if you’re anticipating any losses from your rental property you will probably want to ensure you meet the exceptions to be able to deduct them.

Although we don’t anticipate any issues, we had a proper agreement of sale, mortgage and note, and we are closing with a title company (so there was a title search and we have title insurance) and will be using a loan servicing company to avoid any confusion about payments, balances due and taxes.

It was definitely more of looking at the cycles out there and anticipating rent/value increases in the next 5-7 years, which seems to be happening.

This will give you an option fee up front, it will also get you a premium on the monthly rents because your going to factor in the rent credit over an above the normal rents, and lastly, this will get you an appreciated sales price because your going to base it on the anticipated value in 2-3 years versus today's value. 

and your anticipated profit.

If you do make offers based on that limited info, do you adjust your offer if, after looking at more detailed info like p&l and tax returns, the numbers are worse than anticipated?