Tenant-buyer must exercise their option by day 180.2.

@Jerel Ehlert thanks for the insight that pretty much nails this down then and I have a full understanding thanks for the heads up it is actually a relief in knowing that I can just go on a month to month even though they marked those out and still exercise terminating the lease with the tenant upon notice.

Relax, you're fine.As with a trust, lenders do not exercise the "due on transfer/sale" clause when real property is transferred to the same individuals in an official capacity (e.g.

For example, if you split the difference as has been suggested, have the lease where they pay $2800 the first year and $2600 if they exercise the option.

The person moves their family into the home and hopes to exercise the option in 1 year.  2 months into it, the lender finds out and calls the loan due.

It seems that a lease purchase with stipulations to make the buyer responsible for repairs would be more advantageous than renting because the property owner wouldn’t be responsible for any repairs, they get a bigger up front payment from the sale of the option (which will help with vacancies) and if the buyer exercises the option at the end that’s a win too.

I’d like to transfer them to an LLC however from what I understand if a property still carries a loan and title is transferred to an LLC the lender may exercise their right to require the loan be paid in full.

Stagger the end dates so you never find yourself with all three units going vacant at once.Another benefit of having them sign a new lease.... you can raise the rents if they are below market and immediately give yourself an enhanced return on investment.Good luck

As Jay explained, it's honestly not the end of the world if the IRS exercises the redemption right. 

It spelled out the terms of the purchase and a deadline for me to exercise it.