The previous lease converted to a month-to-month and it transfers with the sale of the property.

In my cases, MLS contained previous photos from the foreclosure sale and it was clear what have been done to the property.

(A recorded trustee's deed (or similar alternative) confirming the amount paid by the grantee to trustee may be substituted for a settlement statement if a settlement statement was not provided to the purchaser at time of sale.)The preliminary title search or report must confirm that there are no existing liens on the subject property.The sources of funds for the purchase transaction are documented (such as bank statements, personal loan documents, or a HELOC on another property).If the source of funds used to acquire the property was an unsecured loan or a loan secured by an asset other than the subject property (such as a HELOC secured by another property), the settlement statement for the refinance transaction must reflect that all cash-out proceeds be used to pay off or pay down, as applicable, the loan used to purchase the property.

Assume the lease option contract is for 24 months, $1K/month rent, and $100K sale price.1.

I am also confused on the contract sales.

The avg sales price in Lake Forest is $660K so you are looking at the difference of paying 6% vs 3.5% - $39,600 vs. $23,100 - regardless of the sales price Redfin offers a better value. 

I have a RE sales assoc. license and would get a referral fee on the latter since I don't use my license for anything other than that and my own transactions. 

The proceeds from both sales went to my exchange intermediary.

how do you mark your state purchase sale offer contract,  when using hard money?

The existing quad is listed for sale at $1.1M and a 5.3% CAP.Commercial multifamily in the area sells at a CAP rate of roughly 4.5%.The existing property is zoned to allow for 6 units and has available land to build an addition duplex for ~$150 per sqft.Assume 1000 sqft duplex at $150,000 and we’ll build that into the loan.After expenses, the additional units will each increase the annual NOI by $14,400 = (Gross rent – operating expenses = $600x12x2).Purchase Price  $1.1MMConstruction:  $150KLoan amount: $1MMTotal for project:  $1.25MM20% down: $250KPre-construction NOI:   $58,300Post construction NOI:  $72,700What is the estimated property value after construction?