Don't forget to exercise afterward.

So now there's that fear that, when looking at properties and either doing a mental exercise or actually getting serious about buying it, there is something inherently bad about that property.

You'd then be forced to issue them a 28 day notice to either: 1) inspire them to sign the renewal, or 2) move out and rent it to someone else.Lease renewals are a great time to make sure your lease provisions are also compliant with various state and/or local laws - so that they're always enforceable if you end up needing to exercise a right under the agreement.

I quit that exercise even on my rentals after seeing the negativity that customers had.

I figured I could get the house on terms and make a profit from the option fee and possibly monthly cash flow, then money from the sale at the end of the option of the tenant chose to exercise the option to buy.

Allow the property to go into foreclosure and then once the property gets purchased back by the lender and then sold to a 3rd party exercise the TOPA (Tenant Opportunity to Purchase Act) rights with his current lease to block anyone else from purchasing. 

The 3rd option is to do a lease option on it to save myself on taxes when option hopefully exercised in a year.  

Start running houses through Bigger Pockets Calculator and exercise your mind to be able to look at a home in your area, Know what it is worth and what it will rent for.

If that is the case that would be a good option to exercise, or you can pay off the second like it was person debt and keep the house.

I guess the only real conclusion of this exercise is do your numbers in your market, figure out what your goal is going to be and what it will take to get there.