Great exercise in rehab budgeting - got to use a new spreadsheet I designed that includes prices for everything and helps calculate actual rehab costs.

The entire concept of predicting market conditions in 10 years, let alone 1-2 years from now is a pretty futile exercise- which is probably why most sponsors throw 100 bps on the exit cap after 10  years because like you said that's what the rule of thumb is and the IRR looks much better than reverting to the historical average.  

I also heard recently that at least one major lender already has a system in place to question all loans that have been transferred to a trust in order to determine if the due on sale clause has been violated if they decide to start exercising their right to accelerate the loan.

This section is cumulative to other existing remedies, and this section does not prevent any tenant from exercising his or her other remedies.

I have seen Due on Sale clauses get exercised by lenders.Also, as @Steve Vaughan suggests, you can be creating title insurance issues, especially if you use a Quitclaim Deed, as opposed to a Warranty Deed.The bottom line is simple.

Why even give the bank an option to be able to exercise the due on sale clause?

Over time, this could result in extreme damage.If you have them installed, it will be a training exercise to educate the tenants on proper placement and to alert you of any issues in the future.Hope that helps!

How you workout and exercise, what you eat, your mental attitude, not the mention the thousands of small techniques to do each action better.

Any waiver of late charges under this paragraph will not affect or diminish any other right or remedy Landlord may exercise for Tenant's failure to timely pay rent.

On the other side it is a good exercise to develop confidence in your analysis methods.