I'd be more inclined to give them an option to buy for 24 months with Option Consideration of 3%.When they exercise, you can 1031. 

The thing about pit bulls, is they are high energy-- they need a lot of exercise,..

And our mortgage company will not allow a lease option (saying they would call the total amount due).Any pointers, advice, ideas or "stop crying" will be accepted, just be gentle.:)

The list isn't important anyway.B - The process you are following, doing what I am assuming is a Sandwich Lease Option is as follows:   1 - Gain control of the property by signing a lease agreement, and an Option agreement (they are 2 separate agreements, and should NEVER be a single agreement...and never include references from one to the other) in the name of an LLC (you).   2 - Sub lease to the tenant (buyer).   3 - Sell an Option on your LLC to the Tenant/Buyer.   4 - When the Tenant/Buyer exercises their Option, they are buying the LLC.   5 - The Tenant/Buyer now owns the LLC, and all its assets...which include the Option to buy the property.   6 - In the end, the Seller never changes, and the buyer never changes. 

You don't own it or have to worry about their mortgage unless you plan to exercise the option and buy the property.

The relationship goes much smoother if you use a gentle touch when asserting your many rights.

As an educational exercise, I went to the courthouse and had them pull files of others who had petitioned for a tax deed.

Consider being a $60k-$120k worker for Amazon there and then run through the "drive till you qualify" exercise.

As an exercise, I think you should run your numbers with more conservative estImates and see if the deal still holds up.

The leases I had includes the option, no time limit, and no specific purchase price.So somewhere along the line, the tenant notifies you he will exercise his option to buy.As to why, plenty of reasons.