that would not trigger a gain recognition and let you use the 1031 for that property;  But it does slow you down from moving in.

If you have mortgages on any of the properties, check to make sure the bank will not enforce the " due on sale" clause. changing the deed and ownership over to an LLC. will trigger that because they consider the property " sold" then.Depending on the state laws where you invest, having all the LLC's under a parent LLC does not offer you the protection and may still be considered as one entity for all the properties and can be touched.

I am scared stiff that when I get my first property I will be locked in debt.

No do not lock yourself in you should be networking with many agents, brokers and investors.

Coming from a background in finance, I know that I will, one way or another, be able to find either a single partner, or group of investors who aren't afraid to pull the trigger, and who are interested in actually developing land, not destroying it, and creating beautiful properties to be sold along with beautiful margins.I'm also curious to know if any of you have tackled projects similar to this (I know I haven't given out the secret ingredient), just speaking of land acquisition / development / selling properties, repeat.Thoughts?

You will be sorely disappointed if you go with option 1 and will lose money if you go with 3.Personally I would ask them to put it on a lock box and hire a local newbie agent from the agency representing you to do the showings.

They probably feel obligated to let you live free but if they are like most parents they would be overjoyed to see you leave and would lock the door behind you.

Almost pulled the trigger on a 12 plex, in a very run down city not far from me.

The bank has gone into his house, winterized it, and locked it up.  

Hi John Chapman ,I need a standard option contract to lock up a property while completing my due diligence.