will there be a problem if they are willing to do that... i told the buyer that that money will be applied towards the purchase price..3. lease option does not transfer title until the purchase is done.. so i dont know why it would violate the due on sales clause.. do i have anything to worry about on lease option and due on sales clause since it doenst violate the due on sales clause?

My lease says that I get $50 per month extra per additional occupant other than those named on the lease - or I get to give them notice of lease violation (and I get the choice of either of those remedies).If you allow it, you should get something in writing that they agree it is only to last until that time limit, otherwise the lease is in default.

Why waste time with code violations and tickets and blah blah blah.

I want the tenants to get the feeling that an experienced company is taking over and while things will be run very well no violations will be tolerated and rents will go up.

If payments are not made or another violation of the provisions of a deed of trust takes place, you (actually the trustee) will provide the borrower with written notification to cure the violation.

The problem is that your money is so illiquid and you have to mind changes in laws, the condition of the property, and violations on property.Keep me posted on your strategy @Will Sifert, I am pursuing a similar one... higher risk though I believe.

This does violate the due on sale and may result in the loan getting called.But sounds like you want a middle ground.

Any code violations are equally violations whether or not the work was done with a permit.

If evidence was found an examiner can detain the violator, bring an arrest and prosecution.

If so, they are in violation of the lease.What does the lease say about utilities?