One tenant had everything out except a very nice step machine (exercise machine), a nice desk, and a kid's bed.

You still get the other protections entities offer and often those threatening you will forgo the exercise if it is too much trouble.

I was wandering about this.I say "ok Mr Smith at this time i am going to exercise my right to back out of this deal due to inspection reasonings".

So, when the option is exercised, does the 10,800$ I've escrowed get returned to the lease option tenants.

We notified next of kin that they had a week to move the tenant's property or we would exercise the writ of possession.  

As a result, real caution needs to be exercised here on BP.  

This is the real world, academic exercises are a way to look busy, but not a way to make money.  

Exercise caution.Private lenders are typically folks you already know or whom you meet through existing acquaintances.I would be wary of folks who are advertising on or trolling internet websites, particularly if they are offering unbelievable rates  - I would put 5% in the unbelievable category as private money, even up here in Canada where rates are lower, goes for 8 - 12% depending on the risk ... and if I have no history with you and you have little to no history in the industry, the risk would be considered high.Sometimes these folks will ask for up-front processing fees - a HUGE red flag as there is no need for any lender to ask for up-front payment.  

However, if they have not and if they're willing to exercise a little patience then they have an excellent opportunity using a combination of sec 121 primary residence exclusion, 1031 tax deferred exchange, and installment sale rules to accomplish the following:1.

The statement shall be filed not later than February 15 of each year, except that a limited liability company formed after September 30 or a foreign limited liability company authorized to transact business in this state after September 30 need not file a statement on the February 15 immediately succeeding its formation or authorization. (4) If a limited liability company fails to appoint or maintain an agent for service of process, or the agent for service of process cannot be found or served through the exercise of reasonable diligence, service of process may be made by delivering or mailing by registered mail to the administrator a summons and copy of the complaint.