I would also avoid the practice of rent credits - crediting back part of the rent towards a downpayment when they exercise the option - or collecting above market rent and setting a portion aside towards the downpayment {the CRA will see this practice as an instalment sale}.You will also want to be certain your tenant / purchaser will be able to exercise the option and either buy out the property in cash, or be able to secure a mortgage at the time of exercise.  

The thing is, in a perfect case scenario, the sellers would like to sell the land together and sell to someone who would be able to develop a subdivision here, but they are so strapped with medical bills and finances, they just want to get out.The good: There are two major subdivisions that have been built (Santa Rita Ranch) very close to the land.The bad: I haven't worked with this much land beforeThe ugly: (Please refer to the bad).Any insight or recommendations as to approach and/or potential exit strategies would be greatly appreciated!

It is class B+, the existing tenants are very stable and medically oriented.

She wanted damages for pain and suffering and medical bills equal to about $50k.Long story short my property insurance company initially settled for $25k but at the last minute they said they are no longer paying the claim because in my contract with the contractor, I placed a line in that states," The Contractor agrees to indemnify and hold the Owner harmless from any claims or liability arising from the Contractor's work under this agreement".  

I am currently in medical school so we both have some kind of health background. 

I too am in the medical field and looking for a way to retire before I am 40.

Because the credit score will be lowered drastically by things that a landlord can (for the most part) ignore - Macy's CC, Sears CC, medical collections for example.But you don't get that type of report with the service you are using ...

Here is an excerpt from @Clint Coons regarding the due-on-sale clausehttp://www.alglaw.com/service/view/land_trustsWith 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 Federal Home Loan Bank Board.So, like K.

Its irrelevant in this case since I am focusing on making sure I picked a conservative ARV, thats all im concerned about in this exercise.

I obtained my Agents license (broker in colorado) to do fix and flips, but have had some medical/financial setbacks and am not in a position to wait six months or so for the cash flows of fix/flips.