Year 1, exit price is 300k or market value determined by appraisal (whichever is lower).  

The basis would be decreased by the amount of depreciation taken or allowed (whichever is greater, they should be equal). 

Quite frankly, whichever way this turns out, I'm still very lucky. 2.

Again, talk with your accountant (maybe a lawyer too) but...One of the biggest challenges I think a lot of 'full time conversion' REIers face is 'how to pay myself in a way that isn't self-employment' ... it becomes a huge deal when you're doing silly little things like, say, getting a cell phone, or a car loan, or a mortgage, or lines of credit... or a credit card...This is where it pays to spend the time and money to set up your LLC/C-Corp/S-Corp correctly so that you can pay yourself on a W2 or through an S-Corp and not have the problems/taxes associated with a 1099.

@VAL AUSTINIf you are in San Diego, I would get a CMA from an Agent and a Rental Analysis from a Property Manager.Then sign a 1 year lease with possible extensions of market rent.Then an option to purchase with 3% option payment (non refundable), strike price can be a trigger of either X dollars or new appraisal whichever is higher. 

A bank will lend a certain percentage (75-95% depending on owner occupied or not) of the purchase price, or the appraisal, whichever is less.

I'm more than willing to help you too in whichever way is best😊Thanks in advance :)

Lots of work.I like the idea for most folks we are looking to invest to get to 10 to 50 doors which ever way they can either sfr or small multi or a nice 50 unit garden apartment.. etc etc. its the rental business and all that comes with it.

Not that I want that to happen I would definitely work with a real estate investment broker or realtor and make sure in which ever property I invest in is worth it.

Ideally you need to able to find their cell phone.