If the bank did exercise the due on sale, is he in a position to refinancer at that time?

Presumably you included the stocks you acquired in income when you exercised the options.

The buy-and-hold investor then gets $2111/month minus expenses (tenant pays for all utilities and maintenance), taxes and loan costs (if they borrowed the money) plus the $350 sell price (minus the accrued down payment $12,250 -- which they already have from the monthly payment).Here are the numbers for the buy-and-hold investor:$2111/month x 24 months = $50,664Minus taxes ($864/yr) = $48,936Plus sell price = $398,936Minus accrued down payment = $386,686$386,686 minus initial investment of $300,000 = $86,686 profitCash on Cash return = 28.9%If the tenant does not exercise her right at the end of 2 years, the buyer could sell the property.

Here's the part of her plan that irritates me: She's selecting the tenant/buyer for you with the intent that they will not exercise their purchase option, but she wants you to split the option purchase price with her because she found you the tenant.

I would like to exercise this on larger investment apartments but figured I probably should start smaller.  

You run the risk of having any due on sale clause exercised, but that is a relatively small risk, historically.

Only got title and 'bought' after exercising the option.  

Also if they exercise regularly, they may shower at the gym as much as they do at an off-campus house.

I too am irked by colleague requests arriving without a formal introduction ... let alone one which help my aging grey matter figure out a the benefit of such a connection.I have chosen to simply ignore the requests until they go away on their own ... but, perhaps that's being a little too passive {honestly, I was trying to see if BP has a built in expiration feature for an unanswered request} and I should join you in exercising the Deny button.So, Hattie, seeing as we hold a view in common ... wanna be my friend :-)

@John Leavelle,Your look at this exercise from a wrong perspective :-)Forget the list price.