There is appreciation potential, but no additional cashflow opportunity. 

If they don’t exercise their Option, I’ll do another Lease Option.That’s why you need money to do Subject To, the right way, wisely & legally.If you would like a copy of the spreadsheet so you can calculate your potential profit when you do Subject Tos, and how much money you should be working with, send me a DM with your email address (don’t post it here, that’s crazy to do ;-) ) and I’ll send you the spread sheet.

It can potentially limit your buyers when/if you go to sell.

I have an questionable potential tenant and I am a bit leery and it lead me to this questions.

@Monil ShahUnless the buddy is also willing to sign up for taking any potential loss, they aren't an equity investor. 

All kinds of potential in SJ, just invest in the right building in the right areas.

There’s still a housing shortage and the upside potential for appreciation is excellence!

It seems like many folks get unnerved about the potential adverse tax effect of a real property sale because they only consider the transaction in isolation rather than taking into account their total situation (carryover capital/passive losses). 

How would we scale this or potentially 1031 exchange into a larger deal (commercial)?

Seller finance and reverse contingency are some potential options but both are tough to get in today's market, although not impossible.