I find that after a bank gets bigger their capital controls and restrictions make it less likely for them to be flexible on make sense underwriting since they are under massive scrutiny from regulators depending on how many assets they have and other financial ratios.I do want to make a note though that I've talked to general counsel at my bank and cannot speak for other banks out there but if title is funded in your name and you transfer it back into your LLC with out any change to owner percentages (100% you personally to 100% LLC) and if the note is paid on time that we "most likey," will not exercise due on sale (DOS).

You want to do an option because options are taxed once they are exercised (or on the backend).

By putting a premium on the amount of DD money in the offers, the owner is obviously trying to bind the buyer and prevent from exercising optionality and tying up his property during diligence period.Your advice about getting a GC in there makes complete sense, especially given a building is completely down and that the complex that has been neglected. 

He pays me a non-refundable option fee ($2000) which is credited at closing should he exercise his right to contract at Y date.

@Nerissa Marbury Unless the damage was extreme this sounds like an exercise in futility.

HIGHLIGHT it and say you see no reason for them not to be out as per their original plans,, that the new tenant has said they need access and can not be delayed.. and if they want to risk the legal issues of this portion of the lease you fully intend to exercise that option, and here is the Notice of Lease extension per B on their lease agreement.. 

All that is fine, I'm just looking to fill in the blanks from there on - which lenders to look at, likely interest rates (ball park) and if they'd touch me at all.I have about $450,000 cash for the sake of this exercise, so I was thinking 40% lend could have me looking at assets up to $750,000.

Management company #2 had never been in the property.Although the tenants are at fault for the way they treated the property, it is my belief that the management did not exercise diligence through regular inspection.

But since I'm having to put a new roof on it right now I asked them if they'd exercise their next extension option right now, and they replied that they only would if I agree to keep the rent the same ($4500) instead of have it increase to $4880 like it's supposed to.

Would love to gather the inputs of as many who have gone through this exercise as possible - maybe you've changed your flexibility over time or maybe you've gotten burned when you did?