It would fall under a couple of possibilities.First did you give them notice of termination following the fire, did they at that time exercise their right of first refusal.It would be eviction for purposes of renovation or you could fall back on frustrated contract law.I would argue that they did not inform you at time of move out that they were exercising right of first refusal combined with frustrated contract concluding that at the time of the fire the contract was terminated.You first avenue of action is to simply tell them NO unless they are prepared to pay the higher rent and see how it plays out.

It's with the exercise.

Besides those on Bigger Pockets, The ABCs of Real Estate Investing is a really simple book and has some very practical exercises that you can complete when you are analyzing different properties.  

The owner would put a portion of your monthly rent toward the down payment of the home, and in 3 - 5 years, whatever you and the owner negotiate as the option terms, you would exercise your option and purchase the property.  

If so, I suppose another value add would be to potentially save the flipper some sales commissions, as well as an ability to close quickly if I exercise my option to buy at 80% of FMV.Cheers,Ethan

The lease option deal is foreign to me, other than someone pays a fee for the right to exercise an option to purchase the house at a given time for a given amount.

This was just on on-paper exercise, but I plan to leave all the cash flow in a dedicated reserve account until I hit a certain threshold, I was planning on $5K.

But we can exercise caution when we see cities building too many apartments when the local employment rate does not warrant it.

In my view LTV% and the ability to leverage has the greatest bearing.As far as how you would do it, would be exercise the LTV through a cash-out refinance or a line of credit, that would generate the acquisition capital to buy more properties.

@Dennis DoughertyMost banks probably won't exercise the "Due on Sale" clause as long as payments continue coming in.