What I do is sell on a Lease Option to a Tenant Buyer getting $25k down and cash flowing the property for about $500 positive cash flow and the Tenant Buyer must wait at least one year and a day to exercise the Option.

If you exercise reading comprehension this was explained already politely to you until you insulted me.

Ultimately you need to be as specific and detailed as possible as this exercise will make you ask questions you didn’t know to ask.  

I’m not even close to getting to this type of structuring but as an exercise of academia, I wanted to get opinions of BP members on the cost and protections of this type of asset structure.

You exercise your rights by screening for quality tenants.

I'm not trying to be critical here, jut provoke deeper thinking.Really this exercise should be quite simple. 

If was a fun and beneficial exercise to try. 

Well they’re just exercising their right so, I’d transfer it back and let that be the end of it.

In regards to the financing and the transfers - there is always a potential the lender can exercise the Due on Sale Clause. 

The exercise of putting in costs and lifetimes to calculate projected maintenance/cap ex is a good exercise because it shows where a particular market fits with respect to the 50% rule.