The seller must sell if they buyer chooses to exercise the option.

If nothing else going through the exercise of putting these numbers together will significantly increase your ability to evaluate your next deal.As far as subcontracting the work goes , take your inspection report and meet with an electrician (or three) on all the electrical issues and get a quote for them specifically.

The other methods such as asking the tenant for a rent increase or asking them leave to let you carry out renovation in the apartment may work but it will be a laborious task especially if they want to exercise their right and if it fails i mean if the tenant didn't agree or consent to your rent increase offer or renovation plan, it will ruin your chances of exercising your right as the owner of the property to use owner occupancy. 

., as the court's in Kentucky have interpreted the statute to mean what it says so any improvements beyond how you bought the property cannot be recovered if the owner decides to exercise their right to redeem. 

In other words, having cash or other financing available to be able to cash out the lender in the event the due on sale clause is exercised.

If the bank expresses they may exercise the Due on Sale Clause in the case of a transfer into the LLC, you can also go the route of using a land trust as outlined in this article.

:)But getting zoning and density and annexing is an exercise in engineering and politics even more than it is a real estate exercise. 

Once you close you have the ability to exercise different exit strategies that works for your deal and your best interest.

If it doesn't work out, you don't exercise your option and walk after the lease if up. 

Have the buyer in place, increase the rent if market allows, then sell it when buyer exercises the option.