Yes, you could take the option if it remained but why would you if the price was too high?

We have two kids in college and decided that it would not be a bad idea to buy a rental property, split it into small, off campus apartments and have one or both move in, then rent out the remaining units(s).

Lakewood is a great place to be, and I hope it does remain desirable!  

Also, in the lease I list that the remaining amount of rent for the first month of $135.00 is due on August 1st when the lease will commence and will need to be paid in cash or with a money order prior to any keys being handed over.

To qualify we would have to reduce the debt remaining on one of our cars by 9k immediately.For FHA, our out of pocket cost (including down payment, lender credit, closing costs) would be about $66.3k at 3.25% interest.For homepossible, our out of pocket cost (including down payment, lender credit, closing costs and lump car payment) would be about $77.5 at 3.125% interest.The FHA doesn’t look so bad but because of the upfront 10k mortgage premium, we calculated that home possible would save us about $13.5k over those 2 years (calculations include monthly mortgage insurance payments and the 10k MIP).

Your cash-on-cash returns will remain high- remember if you pay them off you will have a large amount of equity tied up making a lower return.

As soon as the gentleman checked in to the Vacation rental he called us and mentioned there was a weird smell in the air and he could not remain in the property.

For example, if there are 10 monthly loan payments remaining on your 401k participant loan and the next payment is due April 15, 2020, you can elect to delay making such payments until January 15, 2021 and at that time would need to make 10 more monthly payments through October 15, 2021.

When you have adequately proven that you can carry out this deal here is what I would offer to eliminate as much of the remaining risk to your private lender.1.) 

So even if I lose the ability to generate income from the cash value that is securing the loans to pay the taxes, the remaining cash value will still generate more retirement income.