If they don't like the statute and it's not in the tenant's favor, they will "interpret" it in a manner that delivers the desired result.  

The combination of good jobs in a diversity of industries, favorable climate, and liberal policies have been attracting people from all over and there is no sign of this trend stopping.

Is that why the cap rate is more favorable than other properties I've seen?

Be sure to make them think you are doing them a favor by presenting such a higher offer than what they already received at $205K! 

You may be able to get more favorable terms if you know his motivation.Good luck and don't hesitate to reach out!

HI Allan,First of all you can cash out to 75% as a non owner property if its considered 1-4 financed properties (up to 6 with freddie mac) assuming you're planning for a conventional financing route and this is a 1-4 unit residential property since commercial or multifamily will go off different guidelines.Seeing that you have 4 partners, the "financed property," count will go off the partner who has the most financed properties so you may end up funding in the name or the most favorable partner and may decide to deed/transfer the ownership up according to your perogative (legal question seek professional help).Some states have transfer or excise taxes to do this so be sure to know first for your state before initiating these transfers.

The 90 day challenge worked out in your favor. 6k was your down payment!!!

There's no fixed assignment fee, it's a function of what it's worth (keeping in mind that it has to be a favorable deal to buyers, how many ready and able buyers you have (or can quickly find), and your need to entice action within your option period) less your contract price.    

It multiples your gains when the trend is in your favor and multiples your exposure when it doesn't. 

You'll be doing him a favor in the long run.