These include drafting offering documents, adhering to ongoing disclosure rules, and audits, which can easily run tens or hundreds of thousands of dollars.

The "customized escrow instructions" simply document the intention of the parties to hide the subordinate financing arrangement. 

Suggest you do the same (even if they are two page documents).

This comes from a 2017 City document, but it seems to be current.http://www2.oaklandnet.com/oakca1/groups/ceda/documents/report/oak050966.pdfA real pity, with the severe lack of housing in Oakland. 

Re-read your contracts, document your correspondence (and attempts) with your builder and demand documentation to match up any payments/draws with what's actually been competed on your build.

Focus on key areas first (like floors, walls, kitchen, or bathroom), which may help you handle the costs more gradually, even if it means moving in furniture or updating fixtures down the line.Also, since the tenant left it in rough shape, be sure to document all the damage (photos, receipts) in case you decide to pursue reimbursement through their security deposit or in court.

I understand that the interest on this HELOC should be tax-deductible, and I have documentation to support the transaction.

They wanted me to append the 3 plans into a single document.

But secondly, we already build our profits into the deals and we made probably 160k among those 3 properties over a 3 year period of time with very little effort to manage once the tenant buyers were placed into the home.So yes, it is possible to make lease options very beneficial to everyone.YUP timing is important..

So, transferring title to an LLC is a transfer as defined by most mortgage or deed of trust documents as a trigger of the so called due on sale clause.