I understand the reason for the exercise, but I would add the caveat to have a plan, even though the book says "Let go of any concern for the outcome."

It must be in writing, exercisable within a specific term, and either recite a price or a formula to compute a price.By contrast, a ROFR merely requires the owner, when and if he or she decides to sell, to first offer the property to the holder of the ROFR (i.e., the buyer) at the market price then prevailing.

.), which is close to their initial investment in 2004.Total Monthly expense $607Place Lease with option tenant, $4500 option to purchase for $80,000 in 2-3 years, monthly lease $850So if tenant exercises the option on month 36 this is what the numbers would look like:36 months of existing mortgage = 11988, 11 months remain =366336 months of seller carry= 9828 , remaining balance =30172Total remaining balance to seller= 33835Selling price to option tenant= 80,000 – balance = $46,165Cash flow arbitrage $850 - $607 = $243 X 36 months = $8424Option fee $4500Total gross profit = $59,089What did I forget, and is this a possibility?

While they are off working, I can golf, exercise, or work if I want to.I have kids and grandkids. 

This has been a very helpful exercise for us.

It will be a lengthy and costly exercise, the money you spent so far is a pittance compared to what you could potentially spend, and you will be involved in a lawsuit. 

I just thought it would be a good exercise.

The option amount is "the principle amount of loan #_______ at the time option is exercised."

We have every intention on living in the house, and exercising the lease (hopefully 2 years) and completing the purchase.

If you are like me and hold longer, some properties I've kept for over 20 years, it becomes a more interesting exercise.