What happens if you  or your buyer goes to exercise the option and the owner of the property refuses to sign a purchase and sales agreement for whatever reason.

The LO allows for extended cash-flow and possible high capital return if the sales price is high enough and the tenant/buyer exercises their option.

Hi All,I'm trying to work through a bit of an academic exercise, and I'd like to re-produce some of the results in the Forbes article, Best Buy Cities: Where To Invest In Housing In 2016.  

While this could technically violate the due on sale clause, the chances of the lender exercising that are virtually nil.

I'd like to share the details below and if anyone would be willing to use my numbers to show me how it works would be greatly appreciated.Asking price: $149,900Taxes: $2,120.67/yearRents: $1,650/monthExpenses: $750The asking price is probably too high but as an exercise how could I structure the financing to make both parties happy?

I was expecting 1 of my 5 rentals to possibly have an issue with rent and had some options available to help the renter out , but did not need to exercise that.We will see if this continues next month.

The first things that can get liquidated or exercised will.

If your end buyer is willing and capable of exercising your option then they can probably exercise the option with the original seller.  

I had a client go through this exercise and learn she would be saving about $600/month on taxes (we are in Los Angeles). 

That’s a really tough call, I just sold a property and ate the tax, granted it was relatively low, going through this exercise with a family member right, I’d probably lean toward’s “overpaying” for something to avoid the huge tax hit, but so much of it, is really a question of if you don’t mind managing the properties than yeah 1031 is probably best, if you hate it might be the marginal return of probably an extra 5-6k a year isn’t worth it.