I know its possible to transfer over later but the due on sale clause could be exercised.

I hope everyone exercise their right.

Re: your study in finding the emerging or declining areas of real estate, is that exercise something someone can do with their computer and internet too?

I think that is a pretty good option to have, but I hope I do not have to exercise it.  

It would be interesting to see if one could get a rehab on a house with little money invested.Could emergency personal use these types of houses for exercises and training? 

As a new investor, struggling with creative financing, building and tenancy options was a good exercise. 

The due on sale clause simply gives the lender the RIGHT to call the loan due upon transfer of title.The exceptions to calling the loan due in the Garn St Germain Act are below....See http://www.law.cornell.edu/uscode/text/12/1701j-3(d)Exemption of specified transfers or dispositions With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon—(1) the creation of a lien or other encumbrance subordinate to the lender’s security instrument which does not relate to a transfer of rights of occupancy in the property;(2) the creation of a purchase money security interest for household appliances;(3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;(4) the granting of a leasehold interest of three years or less not containing an option to purchase;(5) a transfer to a relative resulting from the death of a borrower;(6) a transfer where the spouse or children of the borrower become an owner of the property;(7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property;(8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or(9) any other transfer or disposition described in regulations prescribed by the FederalHome Loan Bank Board.

Some People don't like committments, and they prefer the comfort and flexibility of having choices-- even if they don't exercise them.

It's also so nice to hear from a person who did this exercise and it's been successful.

For that exercise, I take the conservative approach and underwrite CapX above the line, assuming the worst-case scenario that a buyer underwrites that way and if the price goes higher, that’s just a bonus.