Instead of implementing a first right of refusal, there should be an option to buy their homes from them at a fair market value/paying to move their homes elsewhere or give them the first right.This is the real issue, we are not protecting tenants by solely giving them the first right of purchase.

And your accountant has the option to treat the 1031 as an installement sale with $1 mil received in the year of sale and the other $1 mil received in the next tax year.  

I just googled "hard money lender Fresno, CA" and about 20 options popped up.I'd spend an afternoon calling around and talking with loan officers.

Thanks Travis, yes I would love to discuss options in Detroit &neighboring areas, will PM you. 

If you go out into Clayton and other outer suburbs, I've seen these at more reasonable prices so it could be an option.

Can someone suggest the best options for us or any experience the same? 

I would call Montgomery and ask if assignment of this option to buy  is allowed.

Where I'm not with your accountant is in her failure to alert you that you had an option to defer this capital gain via a tax strategy known as 1031 Exchange.

You basically need to assign a value to all of the personal property (furniture, appliances, TVs, kitchen supplies, etc) inside the STR and they'll send you a tax bill based on the total. 

The asking price is 77K and a couple different lenders that I have worked with in the past will not lend that loan.Looking for lending options.