I guess the upside for option B is they they could get a little short term cash but then they resign they will be hit with a larger bill.

If this is your case, then your best option is to get an FHA loan on a small multifamily and house hack.

If you would like more information regarding your loan options, feel free to contact me! 

I'm considering investing in real estate to accelerate the growth of my wealth, and wanted to see what my options are.

You do have to think through your options, you said you wanted to take the 500k tax exemption by selling with the 5 year window.

My question is, what are my options?

This is what makes the new 5% down option so appealing for new investors/house hackers. 

Recognizing that I'll need to discuss options with an attorney, I'd like to have a few alternatives to bring up and talk through with them.

if they stopped paying you would foreclose (depending on state laws.)i have bought on seller finance, and i think it's a great option for sellers / investors looking to end / exit their careers. 

I'd show that GC some renovation options for potential rehab strategies.