Of course the property would need to be a relatively higher cap rate considering it would need to cover the 6 & 8% interest being paid.Another option would be a lease option or something of that nature, sublet and exercise the option with private money or a conventional loan.I would love to hear some other ideas/thoughts, etc. on this!

IF YES, did the lending institution exercise the "Due on Sale" clause, either immediately or after they saw the escrow or insurance paperwork change from John Q.

I would only exercise the option if local development continues and I can flip the property for a nice profit.

You need an understanding RE broker.c) Doing a lease option sandwich, staying in the middle, you can earn 3 paydays: option fee spread, rent spread and exercise price spread.d) I find if you market to sellers without agents, as in expired listings, cancelled listings, DIY landlords, and even wholesalers giving you "no equity leads" in exchange for a possible commission for the lead, these are best. 

However, I have been reading that the option money and renters credit is to ultimately be returned to the potential buyer, in the form of a down payment, if they exercise their option to buy.

Did anyone exercise such option?

Assuming you find a buyer for the price you need, that buyer is buying from you and at the same time, you would exercise your purchase option.

The option could not be exercised until the purchase price was paid in full.

I'm graduating May 2014 and looking forward to enhancing my RE, which is exactly why I joined BP.

The buyer can chose t exercise or not, but the seller is stuck.