I could go into more detail about their proposed solution, but it was pretty nuts.

If so, that seems like a less than satisfactory solution to me.Yes the costs will be low, but unless you are charging 10 bucks a night or something, I can't see people staying anywhere without water/electricity/sewer. 

If there really isn’t a reason why they are always late, or there isn’t an easy solution, I would not renew their next lease.

@Mike Neubauer We used Pacific Appraisal Solutions Igor Medo twice, both times appraised higher than when we did the numbers on recent sales, sq footage, etc.

But a better solution would be to make the deeds match as closely as possible and after the 1031 is complete then contribute the property from your name into the LLC.

I have a property management and maintenance solution to offer them as well so it is basically hands off for them which is why they are interested. 

By contrast if they have solid credit and a reasonable DTI, here's your solution.

@Matt Berklacy There are a bunch of "gurus" that offer the lease option solution.

It seems like you already planned well on your own.You will get lots of insights and advices from other BP users for sure but one thing I like to tell you is to look for technological solutions a lot.

I am sure some others will provide great advice on what solutions exist.One key will be getting your wife onboard.