The loans from 401k are not designed as a go to place whenever you need funds and this option must be carefully evaluated before exercising it. 

I've heard that if you transfer ownership (in this case from me to the new LLC), that the mortgage company could exercise the due-on-sale clause?

Frias has a Bachelor’s of Science degree in Exercise Physiology from the University of North Texas.

The rule is that the replacement property needs to be equal or greater value.So thanks to an old IRS 1031 rule, you can sell your old properties without paying capital gains if you exercise the 1031 and follow their rules.

If that's the case, the entire amount paid before exercising the option could be applied toward the purchase, which would obviously be a great deal if your alternative was a hard money loan or other high interest rate loan.

Even if you don't end up buying the place, I think doing this analysis, playing with the numbers, and seeing where and when your profits come will be a good exercise and inform your investment strategy.So, no I don't think that 70 would be low ball at all if these numbers are correct considering the work you'd be putting in and risk.

That will be my built-in appreciation when the Buyer exercises his or her option.

If the tenants pay their $1500/mo. rent on time for 30 months (no rent increases in my case, but a greedier person might want the rent to go up $100 for every year), and exercise their option to buy, I will grant them 5% towards their down payment at closing.

The hand digging was an "exercise opportunity"!

Now, this does not take into consideration the current occupancy, Deferred maintenance, Age of the property, amount of land, upside, supply index of the market, and getting the ACTUAL Expenses, rather than using an industry average of 35% as I just did in our little exercise.