, depending on whether you are selling as an individual, trust, or corporate entity...as long as you meet ALL the criteria/qualifications so as to be in compliance.

And as far as the knob and tube blah blah blah..cover your butt and be in compliance with the local codes and permitting processes...in other words, I would not let this tenant hold this over the contract.....just my two cents.Brian

Andre McCullough Take it for what it is worth but, since I invest in notes, I use a number of key point indicators to determine if an area will be sustainable, then if the numbers make since, I pull the trigger.

Also, you should have some idea how much equity makes an opportunity interesting to you, meaning criteria.I want opportunities with triggers, preferably multiple triggers.

If you transfer title to an entity later on you'll trigger the due-on-sale clause.  

Has anyone done anything like this that might have some tips for me as far as how to best structure this to be in compliance for taxes and such?

Also you sound as your strictly buy and hold and depreciation is a huge tax benefit that you can't use in a solo 401kThat said if it's a solo 401k with a "sub Roth" the future tax savings could be huge and it may over come the extra compliance cost and employment taxes.  

Have an attorney review your contract or a closing agent to ensure local and state compliance.  

You need to determine what activities trigger the permit requirement in your local code.

Structure an option with sufficient money paid for the option to make them comfortable and couple that with a long trigger when you get the property sold so they can have ample time to locate their replacement property2 if they are willing to carry a partial note and are in a cash strong position they could sell to you,  place the note in their exchange acct and later replace the note with cash of their own.