This is not correct - albeit with some clarification;As with a trust, lenders do not exercise the "due on transfer/sale" clause when real property is transferred to the same individuals in an official capacity (i.e.

I know you mentioned they were "A" and "B" rated, but since you're posting from LA County you can go through a thought exercise to help figure out where you're buying.

I did this exercise to figure out what these all looked like on paper:  I took 3 representative rentals - one representing a C class house that at the time was $75,000, a nicer (maybe B-) house at $125,000, and a solid A- to B+ house at $200,000 - all for rent on Zillow so I could be using real numbers for my calculations.  

I've heard some people doing the lease option for a price agreed upon by an appraiser during the time of exercising the lease option.

My example is just another thought exercise, one of many here.

I've been pleasantly surprised that most of them will make arrangements to have a local gig worker of some kind come by and walk their dog once a day for potty break and exercise.

Real estate development is a complicated capital intensive process and there's a lot you need to know and do before you put a property under contract or close on a property you plan to develop.First you need to do a quick feasibility exercise to determine if the project will work financially.

Collect a $10,000 option fee (36 month option) $70,000 option price Monthly rent increase to $800/mo....contribute $30/mo. to purchase price to justify the rent increase.Everything else remains constant $6,500 cash on the front end $10,000 on the back end if they exercise the option...if not, plan B...Thoughts?

But if there is a wholesaler that buys each house, free and clear, and then sells each house, they are will within my understanding of the law and obviously are executing on their contractual obligations.Which brings me back to the first point, even those wholesalers that do execute contracts and stay within the law, they still start and end the exercise with distressed sellers.   

If there is no appraisal contingency or the appraisal contingency has been waived or removed, then failure of the Property to appraise at the purchase price does not entitle Buyer to exercise the cancellation right pursuant to the loan contingency if Buyer is otherwise qualified for the specified loan.