Our grace period is normally until the 5th of the month so after that a $50 late fee hits. 

They probably expect interest and the defined payback period.

I don't know SC law, but make sure you're returning it within the allowable time period, and if any interest is due is included too.   

@Andrew Taylor the typical seasoning period is six months.

I would prefer not to do that if possible, because I don't want to expose myself during this brief vulnerable period without protection, but I also don't want to break any laws or LLC shields if this process is not handled correctly.What are your thoughts?

I joined BP a week ago as a Pro member. Since then, I started a discussion roughly mapping out my present finance state and possible venues to invest-in as a newbie in the business. The information, I've been exposed,...

Those are the questions you've got to answer.There's no statutory holding period for converting a 1031 property into a primary residence. 

If the seller declines the offer, it will be for a combination of a) offer amount for the property ($20k) is too low, b) he can't wait 90 days and wants a shorter option period of, say, 30 days max, and/or c) he feels that the consideration you offered for the option contract ("1.5x") is insufficient incentive for him to lock up the property for 90 days.4.

VA loans don't typically include cash-out for remodels, but I believe there are some niche exceptions such as energy efficient upgrades.

In Florida, the buyer can back out any time during the inspection period for any reason - or no reason - with full return of escrow.