In these situations the tenant may be just as happy if he can sign a new, extended lease at decent terms with the purchase rather than having to purchase the property himself.

I was thinking that with the lease option, could I negotiate something like 20 - 30% of the monthly rent to apply to the downpayment, if I chose to purchase, And the LO to extend for 1 - 3 years.

And you can always extend the inspection period if needed for their benefit.

My thought is to have that tenant clean up the property, or just next extend the lease next spring.

If so, then they're the bank and it's up to them if they want to extend credit to the buyer. 

Send me a DM, I will be available before or after the conference if anyone is making an extended trip.

If you are interested in a evening bonfire REI meet-up; please let me know and put me in touch with the local group and I will extend the invite.Thank you and keep the comments coming.

The strategy I have been taking is to sit and wait and hope the IRS doesn't extend the lien.

So if you were not over extended prior to the GR, you should not have had any difficulty weathering the GR.  

If you think it will only take 2 months and 20k to complete the rehab and payments are deferred for 45 days, I think you have enough cushion with the other 20k to cover payments if the project extends longer than expected.When you REFI most of that loan will be left in the property so the addition rent + your income will be needed to pay that off.Is the selling it part just a second option?