This strategy is not very viable as the investor offering the lease option will be inflating the payments to a point where it wouldn't be competitive for you to rent.Generally lease options work like this (basic not to be taken as gospel real lease options are much more complicated)Market rent in x town is 1,500 for a 3 bed 2 bath townhome.

FWIW, I have found that smaller developments in terms of acreage can be more complicated than larger tract developments.

@Sam PatelThis appears to be a complicated setup for what you are describing.The LLC, if done correctly, is a separate legal entity from either you or the private money lender. 

I would search the record number and see what you can find on your judicial portal (if you have one).

The problem is, Bank rates on 15 or 30 year fixed in this country starts at around 12% for commercial, even mortgages for primary residence are around 10.5%Private money is obviously at 15% or higher (if you have connections)I know i find US investors but lending from other countries makes it very complicated and i am not there yet.Any opinion on how i can grow this thing?

Using an LLC for rentals provides extra complications and hassles, of which you've already mentioned.

I think this is just way too complicated.  

At this point, we are thinking we need to put the titles back in only the original persons name before the tax years end to avoid these gift taxes.We own properties in the following states: MN, TX, UT and our primary is in CA.Appreciate any advise, I do realize the question in complicated.

One may be able to rely on the registration exemption for private offerings, but legal complications loom on the horizon for the middleman unaware or unwilling to accept current legal opinion in this area.

You getting the deed and trying to sell it may cause complications to the transaction with mortgage servicer and investor of the note.