Exit strategy is rent and hold to resell in 5+ years.

The buyer backs out and looks for another house, leaving the investor (seller) scrambling with increased holding costs.So, any house I plan to re-sell I immediately assume that FHA & VA financing for a buyer will not be an option.

Coming up with $2M to acquire, rehab and resell $10M in property is not unlike a big commercial project.

If you plan on holding the property for 5 years, and renting it, then yo should be fine, but it sounds like you are after a quick-flip, and that would be extremely difficult.If you buy, and then re-sell within 90 days, then almost no appraiser in CA is going to appraise the property for anything above the previous sale price, unless you can provide proof of funds that went toward repairs or improvements.

I buy and assign or keep, rent, resell properties in highly growing areas or areas that are undervalued.

Property that was purchased to resell is considered inventory in your business, aka dealer property.

Now, what happens if I consider reselling (flipping) as an exit strategy instead of renting for the cash flow?

You could either sell your option to the buyer for $8K, or you could exercise the option and then resell the property.

The lowest price that tenant (meaning the investor) will resell the house for is $(ex. $400,000.00 )and if the house should be sold by tenant for an amount less than this, tenant agrees to pay landlord under the terms of this agreement the same amount as if it was sold for this price."

I don't ever tell the bank/seller or the listing agent that I am going to resell the property.