Taking on deals like this that decrease wealth, such as low return high upfront cost whole life insurance, paying 19% interest on credit card debt, paying 2% annually to have a “wealth advisor” place your money in Vanguard Index Funds, paying for a high cost mortgage because you’re credit is bad, and “debt consolidation” programs are all reasons adding up to why many people can’t achieve financial independence and remain dependent on working every day to live paycheck to paycheck.There is a chance that in a particular circumstance any of these, including the program offer you describe, can be beneficial in certain specific cases.  

There might be another 3 years after that, depending on circumstances, during which the former owner can redeem directly from you. 

Only have members on your LLC with good credit 680 and above, you can use a will to plan for unexpected circumstances.

It is quite an undertaking, processes will be long and unforeseen costs could pop up.

A solid financial foundation indicates that the sponsor can handle unforeseen challenges and continue operations smoothly.Track Record EvaluationAnalyze the sponsor's historical performance on similar projects, including timelines, budget adherence, and overall project success.

However, if circumstances do indeed change over the course of the loan, there shouldn't be a penalty involved if you move into the property down the line for unforseen / unintended reasons (such as maybe in a couple of years there is a family emergency requiring a need to temporarily move into one of your rental properties etc)

If this is an insurance claim the process is very different than hiring a roofer during normal circumstances.  

Every circumstance is unique.

What we find is that owners in your position can do well in a set of ideal circumstances:  the home is in great condition, they find excellent tenants who treat the property with care, and nothing crazy happens. 

Depending on the facts and circumstances of the agreement, it could either be treated either1) the sale occurs as of the original agreement date, and then your taxable gain is generally spread out over the life of the principal payments as an installment sale (although I should mention any depreciation you've taken on your property could affect this), or2) the sale does not occur until the lease option is exercised, and gain reported at that time.