For example, if you split the difference as has been suggested, have the lease where they pay $2800 the first year and $2600 if they exercise the option.

The person moves their family into the home and hopes to exercise the option in 1 year.  2 months into it, the lender finds out and calls the loan due.

It seems that a lease purchase with stipulations to make the buyer responsible for repairs would be more advantageous than renting because the property owner wouldn’t be responsible for any repairs, they get a bigger up front payment from the sale of the option (which will help with vacancies) and if the buyer exercises the option at the end that’s a win too.

I’d like to transfer them to an LLC however from what I understand if a property still carries a loan and title is transferred to an LLC the lender may exercise their right to require the loan be paid in full.

Go to LOWE’s or HD to see the samples they have and some of the stock tops they have to see a larger sample.

As Jay explained, it's honestly not the end of the world if the IRS exercises the redemption right. 

It spelled out the terms of the purchase and a deadline for me to exercise it.

I want to get a sample contract/agreement created so we can have it lined up and ready to go when we find a property. 

I guess it’s so new that probably very few have exercised this option

It was an amazingly humbling exercise that I would recommend to every investor, given we are at the top of Markets again in many markets.