One way to protect yourself from the downturns that are certain to happen during normal ebb and flow would be to lock that rate in.

Regarding deeding back to the LLC- You could trigger a due on sale clause in your loan documents if the property is deeded back to the LLC.  

You lock your doors right? 

That's a very different experience for which you may be disadvantaged relative to other investors.  1031 what you've got locally into a different asset class (larger MFR or commercial).That equity you've got is basically locked in real estate - refinancing to access it is probably the most attractive option if the equity is very large.

I don't want to get locked into borrowing money for 30 years at a 7-8% interest rate which also charges a penalty if it's paid back early.

Another thing the IRS is looking at more  are those who are taking distributions when they did not meeting a triggering event.

Do you get the contract locked in and then come back for disclosure paperwork? 

A recent offer, mentioned in the first post, is what has triggered him offering it to me. 

Not sure if you pulled the trigger, I wish I seen this...322k is pretty high

 I found I deal that could be very profitable for me, but it's so hard to pull the trigger on something that isn't pretty,  only depreciates, and might be more work than I expect.