I like rehab sub2 , fix and resell fast model better, less risk of loan being called.Use a land trust.If this is a MASS property, like 600K SFR FMVLease Option Sale Termsmarket rent monthly3% from TBer $36K1 year lease then a possible 1 year extension if the TBer performs, new lease and new option in 12 months. 

Investment Info:

Small multi-family (2-4 units) note investment investment.

Purchase price: $100,000

Cash invested: $1

Sale price: $124,900

purchased with no money down and sold it as an escrow a...

You can pay cash (obviously) and resell for payments, cash, or rent.

. $150 used washer and then resell for $100 in a few months will probably be cheaper than a rental. 

If your primary intent in purchasing this property was to resell then the IRS considers it inventory and the 1031 is not appropriate. 

My worry had to do with a worst case scenario exit plan which would be to resell but since I’m starting the deal off $1500 under I was concerned.

But if you purchase fix and sell that looks a lot like your intent was to resell. 

I'm going to buy it with cash, and if I can't resell it, I will rent it out for a couple years. 

Liquidated damages are paid by you regardless of how much damages the Seller actually suffers(ed).For example, if the EM is $ 25K and the Seller resells the property to a new buyer with an actual out of pocket loss from your breach of $ 10K, an argument can be made that Seller should not make a profit, unless the contract allows for such a situation.2.

I think it is fairly short sighted overall as landlords will ultimately default on mortgage and give property back to bank, and the bank can't resell with a non-paying tenant in there.