It was a good exercise, but you don't want to waste that much time on every property you identify. 

A properly set-up DST will both protect your assets and bypass the burdensome franchise tax that would be levied against a Series LLC.The Delaware Act expressly provides that “[n]o creditor of the beneficial owner shall have any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the statutory trust.” 12 Del.

With the non-judicial is that just the lien-holder(s) exercising their right to call the note due without any legal process?

This exercise will help you clarify your goals.   

In my opinion, there is no way you need to buy this house and you need to exercise patience.  

This was a good exercise in finding CORRECT info on the property and learning how the tax calculations are performed.

So I am cash flowing 1450 - 1004 - 174 = $272 monthly and I have about 4K of my own money left into the property when all is said and done and it is leveraged at about 80% with about 40k in equity (82% cash on cash return per year).At the end of the 3 year option period, if the tenants exercise the option, I should have a payout of about 49k and I should have accumulated nearly 10k in cash flow.

When the policy changed the bank will know but generally wouldn't exercise any heartache for you.

.- Lease/Option - don't do major property improvements before you exercise your option unless the whole deal is escrowed with an attorney.- Lease at a low payment.

The reality is it is very rarely exercised by lenders, even when they know about a transfer.