If things are going smoothly, and we want to renegotiate terms with the seller, we may exercise our option and keep this in place for another 5 years.

I can read the words on the screen but I can't find even the illusion of coherency within what they posit.It's a pithy exercise in gobbledygook, it really is.

It depends a lot on the property type and your plan with the building.For example, for a typical multifamily building in NYC, you might gets 5+5, 7+5 or a 10 year quote over a 30 year amortization (the '+' meaning that your initial term of 5 or 7 years is at a fixed interest rate and after that initial term is over, you have the ability to exercise an option to either fix or float the rate for an additional 5 years).Tell me more specifically about the asset and I may be able to point you in the right direction!

@Tanya Lam  exercise care when your a lender or money partner. a couple of quick things to do when vetting someone your going to do a deal with and your the money.1.

Maybe I need to exercise my muscle of understanding debt better.  

More importantly, the seller needs to KNOW (in writing, signed by the seller in front of an attorney, in my opinion) that the due on sale clause has a potential of being exercised by the bank.

If your tenant exercises his option, you exercise yours and pocket the difference.

An exercise to do: How much is my time worth?  

Unless Buyer exercises the right to terminate granted herein, Buyer accepts the physical condition of the Property and any violation of governmental, building, environmental, and safety codes, restrictions, or requirements, but subject to Seller’s continuing AS IS Maintenance Requirement, and Buyer shall be responsible for any and all repairs and improvements required by Buyer’s lender. 

Writing a business plan even if it's just in outline format is a valuable exercise for the business owner to get clarity and analyze numbers for profitability and cash flow.