I've taking money out of my IRA, paying taxes and penalty, to invest in syndications. 

Most mortgage payments give a long grace period, so if you are making payments on the property, there is most likely plenty of time to do so without penalty. 

Caroline - I agree with everything you say, just wanted to clarify: 1) I would never allow a time frame or completion date on any of my contracts, too much to go wrong (usually customer's fault) and then they're pointing the finger at you...when someone asked if I would have a penalty clause (like $500 a day) for finishing past X date, I would say, sure, only if you pay me $500 for every day I beat the deadline.

A shady private self-funding LO may have an early pay off penalty. 

The purchase price of house has not changed in this new contract, however the closing date is obviously different and there is a $20k penalty for the delay.

If rented we charge 50/hr for our time during the reno and split reno costs (including our labor cost) 60/40 (40% is ours) however we owe a 0% loan on the remainder of the 50% property purchase cost (115K/2=57.5k-25k=32.5k) for a term of 15 years and are unable to charge our standard management fee to the other party which is 10% of their monthly income until the loan is paid (no penalty for early repayment). 

A couple things i would consider:1) Is there a prepayment penalty in the terms of the owner finance?

What is the penalty for breaking the lease? 

A piece of advice on Marketing: RVM can get you in trouble, they change the laws in 2019 and you can get a hefty penalty doing that + the rate of conversion is very low.

We are thinking of putting in the purchase agreement (drawn up by a lawyer) a pre-payment penalty of 20% of the outstanding balance in order to hopefully cover the taxes we would have to pay.