If it is a small enough house like this and I do have not much to do, I can just drop my 1hr exercise routine and 1hr lunch walk to do this.

They are eligible for ROFR only if other conditions are met(i.e paid on time, no damage, non-refundable fee per exercise of it).That way you'll get them to behave well, can price accordingly, and hopefully keep them around if they are good.

If you do not pay them they will exercise their right to foreclosure.

This last year was an exercise in "what not to do" LOL! 

(b) The failure of a limited liability company to observe formalities relating to the exercise of its powers or management of its activities and affairs is not a ground for imposing liability on a member or manager of the company for a debt, obligation or other liability of the company."

Might as well go through the exercise of seeing what you could likely walk away with...and then what you could do with that money.If you can't hit a number that works, keep renting it...if you get the magic number sell it and move on.

If you don't like it, don't do it...but don't actively wish or take delight in the fact that others MAY be failing or getting the due on sale clause exercised.

From the Fannie Mae guidelines:provide the following statement: We [I] agree to indemnify you and your successors in interest in the [mortgage] [deed of trust] opined hereto, to the full extent of all losses attributable to a breach of our [my] duty to exercise reasonable care and skill in the examination of the title and giving of this opinion.I think the threshold for proving a breach is pretty high. 

You can control the investor's ability to exercise the option... placing "not exercisable before" type language in the document.Options are advantageous over JV to avoid partner disagreements. 

Go through that exercise.