Example: “buyer does not have to exercise a balloon payment unless the appraisal is 25% more than the current loan balance.”

Early termination if included in the lease is what the renter can exercise if they want to leave the lease early.

Get your numbers down pat -- spend time on craigslist seeing how much houses rent for, and then go to realtor.com and figure out if any single families in your area will cashflow (not to buy, because you don't have the money down right now; just as an exercise to build your deal-recognition muscle).When you find the MFR in your area, call the landlords and PMs and ask if you can take them for coffee.

While many investors have 10-20 properties, many which are not paid off, the bank do have the right to exercise the due on sale close and bye bye properties.Better strategy is to get 10 BRRRR properties max that way you reach your conventional loan limit and try to pay them all off ASAP.Just imaging 10 payoff properties and some being multi, that cash flow is sweet.I will stop at 10 and then go to developing.

This free exercise isn't paying da bills ;-) Thanks for working so hard on it.

At the end of my years of course I would want all B class and A class properties as I am sure I will have less energy to deal with headaches, maintenance issues etc. and I may be thinking to exercise my exit strategy but who knows.

It is really for the sake of the QI who cannot have any taint of clients having constructive control over the funds, and the rest of the QIs clients who could suffer if the IRS ever ruled that a QI was actually letting clients exercise constructive control over their funds. 

I’ve seen investors get large amounts down and refuse to return it when the tenant moved without exercising their option.

"patience" is highly desirable trait when investing, but one of the harder ones to master - particularly at 22.Determining cash flow of an operational property is a relatively straight forward exercise of first determining your net income by deducting all operating expenses from revenues.  

FWIW, I am a big 2A guy, and fully exercise my rights