The difference is you have the risk concentrated on a very small sample size.

You exercise your rights as a junior lienholder to pay off the senior.

The exercise of tracking it regularly helps to keep it top of mind and it also allows me to see how my plans are working compared to my goals and if I need to make adjustments (I agree with @Chris Clothier that you've got a keep a long-term perspective because real estate investing, like life in general, is a marathon not a sprint).Great question, Allan!

Yes you should easily shed a good portion of it but to shed all of it will be a lot harder and needs diet and exercise (not just one)This is evident also by the latest treasury bond sales - other countries are slowing down buying our debt which means rates (especially mortgage rates (will stay higher longer).

Hey @Scott,I was wondering if you knew of any websites where we could find sample LOIs or PSAs online?

-Most leasees never exercise so 3 to 5 years from now... you keep the option fee, and had the benefit of rent that was probably above the market rate for your area.The drawback is that you don't get the ~$250k(after selling expenses) to play with. 

Here are the sample journal entries for the accounts you mentioned:1.

If you sell an Option, you would not have debt payments, but they may want to exercise the Option right away, so you meed to think about the language you put in it.Example. 

Quote from @Gyn Samples: Hello BP community!

our single best exercise move was to move to AZ in the winter.