Also, if I purchase it under my personal name and transfer it to an LLC, that will incur transfer tax and may trigger the due on sale clause.How have other BRRR investors do this (if possible)?

I calculated the CAP rate when I was first doing my "due diligence" and it was so high I just pulled the trigger.   

In my experience most residents never pull the trigger on lease options, so the investor gets to keep the option fee and they either remain as tenants or they move out and you can do it all over again.

I’m a newbie, no experience, gaining theoretical knowledge by reading books and living on BiggerPockets, itching to pull the trigger on my first deal and really start learning, money burning a hole in my pocket, and I am trying to minimize my risk.

Some advice about the market, it don't try to beat it, real estate should be a very long term investment and if you hold a property long enough it will rough out an losses that the market will take from it.Regarding your two options, neither are bad ideas but it is all about the execution, be sure to do your due diligence and have a strong team to support you, when you finally pull the trigger.

I've yet to pull the trigger on where to invest it.

We loved the location and pulled the trigger.

One strategy is to purchase a property into your own name and transfer it into a Land Trust, which does not trigger the same flags as it would going directly into an LLC.

i’m looking to pulling the trigger on my first deal here shortly in the East End. 

Long story:I recently posted that my grandfather passed away this month, coincidentally happening right when I was pulling the trigger on next steps into proper real estate investment.