The person moves their family into the home and hopes to exercise the option in 1 year.  2 months into it, the lender finds out and calls the loan due.

It seems that a lease purchase with stipulations to make the buyer responsible for repairs would be more advantageous than renting because the property owner wouldn’t be responsible for any repairs, they get a bigger up front payment from the sale of the option (which will help with vacancies) and if the buyer exercises the option at the end that’s a win too.

I’d like to transfer them to an LLC however from what I understand if a property still carries a loan and title is transferred to an LLC the lender may exercise their right to require the loan be paid in full.

As Jay explained, it's honestly not the end of the world if the IRS exercises the redemption right. 

It spelled out the terms of the purchase and a deadline for me to exercise it.

I guess it’s so new that probably very few have exercised this option

It was an amazingly humbling exercise that I would recommend to every investor, given we are at the top of Markets again in many markets. 

Landlord shall have the option to terminate and cancel the Amended Lease ("Landlord's Termination Option") by delivering to Tenant written notice of Landlord's exercise of Landlord's Termination Option (the "Termination Notice").

It was an amazingly humbling exercise that I would recommend to every investor, given we are at the top of Markets again in many markets.Here is how I analyzed things.

The Musks of the world have an ax to grind and often swim upstream just because they are in the habit, not because they are exercising critical thinking skills.My view of the right order is to get a good education, get a job with benefits, suck it up and learn for a few years, hopefully something that may help you if you do think real estate is a path you can take - and then buy a house of your own.