I would talk with them and ask them their intentions with new management coming in....

Interest is also accrued on these penalties daily from the date they should have been deposited.A Failure to Pay Taxes penalty equal to 0.5% of the unpaid tax liability for each month up to 25% of the total tax liability.If the IRS suspects fraud or intentional misconduct, it can impose additional fines and penalties.

Non Owner Occupant mortgages come with a larger down payment requirement and a higher interest rate, but being truthful about your intentions doesn't get you jail time.Forming an LLC and buying the property inside it is difficult to do.

We had to fire our GC on Friday and decided to take a deep breath and a couple of steps back and start from scratch.

Not to mention you intention is to offload after a year per your previous example.

Here is a contract that works in principle for sellers (Sale and Purchase Agreement)https://www.dropbox.com/s/btdjwte4p8k4j57/Standard...For a lease option assignment, use a letter of intenthttps://www.dropbox.com/s/enf31ammsbt4wfm/Letter-o...that letter of intent has a docusign segment.

Couldn't open the link you've put in your post.I've recently picked up a couple of SFR's in Oregon and am looking for private funding to get into Multi-Families with the intention to generate cashflow. 

Someone can easily sell you a mispriced (it doesn't matter if it's intentional or their own error) property and you'll be stuck with it.

If your intent is primarily to sell the property (fix n flip) then when you sell you will pay ordinary income tax on the sale and do not have the option to do a 1031 exchange and defer all tax.If your intent is to hold that property for investment use (like you suggested - actually rent it and enjoy the income) then it would qualify for a 1031 exchange. 

Yeah, sure they might sing a Letter of Intent with you but that really doesn't mean squat.