Exercise.

I will use that exercise prospecting future deals.

It is a simple spreadsheet exercise that doesn't require brain damage anymore.

Plus, if they don't exercise the option, you keep their down payment and now made more profit. 

You are asking if it is OK to exercise the option right in three (3) years to buy the property and "pay for it" by selling another property through a 1031 Exchange with the optioned property as the Replacement Property. 

This REI journey would allow me to exercise control over my financial future and allow me to determine what risks I am willing to take.

The agreement reads that the other general partner can ask to have the man evaluated by 2 doctors and if they declare that he is unable to tend to his affairs (which he is) then the other guy can exercise complete control.

." - Thomas Jefferson "To take from one because it is thought that his own industry and that of his father’s has acquired too much, in order to spare to others, who, or whose fathers, have not exercised equal industry and skill, is to violate arbitrarily the first principle of association—the guarantee to every one of a free exercise of his industry and the fruits acquired by it." - Thomas Jefferson

The investor is obligated to accept a DIL in accordance with the terms of the SSA if the term of the SSA expires without resulting in a sale of the property - This means come day 120 the lender can exercise and enforce a DIL because the seller already agreed to it in writing.

Great exercise because walking into the store the emotional part of the transaction was quite palpable.