Get a good lawyer to review the contract.

I'm not a lawyer nor an expert.  

We did speak with a lawyer regarding our options but we have decided to move forward with temporarily keeping the current occupant in the property for security sake (see the deal diary link above).Thank you all again for the warm welcome. 

If you're taking any part of an option fee in the contract and then assigning a contract , the CFPB and Dodd Frank look at that as some kind of financing arrangement as per my RMLO, and I want to protect myself in case the tenant buyer gets a lawyer and says that the "ability to repay rule was not followed".Bottom line get a RMLO with lease option assignments and underwrite the tenant buyer.

This will be needed NEXT year, but I want to budget the money so I want to figure this out ahead.If I can't, I'll ask my tax lawyer brother to help me out, but I don't want to.  

This will be needed NEXT year, but I want to budget the money so I want to figure this out ahead.If I can't, I'll ask my tax lawyer brother to help me out, but I don't want to.

If your tenant has no money he may have trouble keeping his lawyer going when you fight back and bring a lot of roadblocks yourself. 

Title company, thank god was a real estate lawyer.1.

It sounds like you don't have to worry too much about capital gains, but if you do, maybe talk to a lawyer/accountant to see if you could 1031 it to a small multifamily in Texas.

Consult a RE lawyer.