I would tie the exercise price to a new appraisal, whatever it is.

No reason to go to Portland, but I did spend all summer in Eureka, CA area for the exercise and great weather.

They may frown on it in theory, but in actuality you'd be doing them a favor by exercising their valve for them :) I'd bet that they guy they would send out to do it for them wouldn't mind you doing it.

So rest assured they will exercise it if the situation is more profitable to do so.

The lender will count the option as the tenant is not going to exercise and the property will go dark.

Unless the lender has exercised their right of assignment {i.e. you missed payments}, the PM has no reason to be involved.

They may in the future come forward and simply decide to exercise their right of Acceleration for Alienation.

I have a question about the option versus lease purchase.I understand it would release option that I will set up a time frame and at the end of the timeframe I have the option of exercising the purchase of the property.

Example, I create a lease option agreement with Jimmy Buffet, and we agree that I have 90 days to exercise or assign my option.

Additionally, the land surrounding the property is a registered national historic site (more red tape to developing) with a recently paved walking path that is becoming popular for people exercising (no windows look out onto the path).