Remember that they must give you notice of their intent to move back in before they vacate the units: "A notice under clause (1) (c) shall inform the tenant that if he or she wishes to exercise the right of first refusal under section 53 to occupy the premises after the repairs or renovations, he or she must give the landlord notice of that fact in accordance with subsection 53 (2) before vacating the rental unit"If a tenant needs to find a new place, get all of their stuff out (you can definitely require that every last item is removed, even if they want to move back in after), move out, they will not want to go through the hassle and cost of moving in again.As @Rob Dowsett said above, if the tenant does inform you before moving out of their intent to move back in after renovations, you can always try cash for keys.If you would consider house hacking, the RTA also allows you to evict a tenant based on you moving into the unit, so you could evict a tenant, renovate, and move in for a reasonable amount of time.

My plan is to exercise patience and buy when the time is right.

(Catch-22 is described in prior posts...it's a $400 property in a $750 neighborhood where the family is living in unsafe or unsanitary conditions and cannot afford to exercise their right to complain or move.

I am in the process of doing this exercise in real life.

Mortgage lenders, judgment creditors, IRS--they all have redemption rights they can exercise in order to protect their liens. 

The opening balance sheet looks like:Assets:CFD for Prop 1: $100KCash: $12KLiabilities and Equity:Loan balance for CFD on Prop 1: $88KOwners Equity: $24KIncome Statement:Rent Revenue: $1100less PITI: -$661Less vacancy and repair reserves: -200net distributable cash flow: $239$80 distribution to each investor for per month on an $8K initial investment.As the MTG balance drops, the equity position of each investor increases, once paid off, the CFD is exercised and equitable title transfers to the LLC, and I no longer hold a financed property in my own name.

I am doing my exercise in Chapter 5: How to tell if a town will boom or bust (The 12 Keys).

Was he just putting nice numbers in for the exercise or are there traditional loans out there for investment properties?

The other challenge is usually along the same lines (often exercise, financial planning, etc.).The challenges or exercises might be things like filling out the "One Sheet" (which is basically a big spreadsheet with goals, net worth, etc).

They don't get exercised, socialized, or any type of structure.