I think this is a good lesson as to why the 2% rule/CAP rate exercises are just preliminary tests you can run on a property.

Exploring ways to reduce taxes is one exercise in the exploration of those options.

You can exercise your right at any time during the next twenty years.

I have not had an issue or heard of anyone I know have an issue.Like what Ronnie said, keep the note in your name and clean, and the bank doesn't have reason to exercise the DOS clause.

An illegal eviction occurs when a landlord illegally denies a tenant access to the rental unit or a tenant’s property is removed without a court order and the removal: Is not the result of abandonment and/or is not the exercise of a landlord’s lien.

You can always exercise early if it makes sense. 

Exercising that right does not mean one is doing so for nefarious reasons. 

If she stays past the end of October then she can not exercise her rights under the victims abuse laws, since obviously she is staying and does not feel threatened, and you can charge her your reletting costs as a consequence of breaking her lease.

It might change your deal analysis.One of the great values of real estate investment is that, for the vast majority of people on this forum, it is a "close-in" investment over which you can exercise a great deal of control.

By accepting this premium, you are obligated to sell the property to the option payer under those conditions should they choose to exercise that option.It's really no different than stock options.