Sounds like an exhausting exercise to save a few dollars.

This is where we need to exercise some self-responsibility.

Like any exercise equipment fatties buy, it was obviously never used.

Matt, I'm unclear on why highter interest rates, or for that matter, using land trusts, will cause lenders to exercise their due on sale clause more.

The tax code is built to favor business, one simply needs a good accounting firm whom knows how to exercise this.

In September of last year I got the property back by exercising a quit-claim deed as the buyers stopped making payments.

You may argue that you held the property for rental use for two years before the tenant exercised their option to purchase., and, you argue that this qualifies for capital gains tax treatment.I would argue that your intent to sell (flip) never changed, and, that the lease purchase option was just a marketing vehicle to facilitate the sale which allowed your buyer time to get financing in place. 

There are very good reasons why most carriers prohibit the exercise which typically leads to a frustrated tenant as he seeks to comply with the requirement.

One other issue: if you are structuring the deal as a lease/option, wouldn't it be absolutely the right thing to pay lot rent directly to PM (at least before the option is exercised)?

In 2006 they exercised Eminent Domain against our property but never acquired it because the developer fell through.