. $300K as I put a hefty amount down through that 1031 exchange).Current offer on the table proposed by my broker:$600K Purchase price7 year lease with option to purchase within 3 years for an amount equal to $600K less what they would have otherwise paid in principal under under a 7% loan for the same period). 

After the rehab/rebuild is finished what would the most lucrative option be?

Life can change so fast, you don't want to be locked in.....One year lease with incentivized options.

Plus, with a SF home, you have more options for renters.

Option: Start advertising it now and get an interest list.

A small apartment complex would be a good option also.

I personally would do the first option. 

Proper Insurance and Steadily have always been solid options for short term rental insurance.

At a minimum it would reduce some of the consumers options and flexibility in transactional structure. 

If you still want to do that, options I offer, 1) if you want to sell the home FSBO, I can put it in the MLS for a low few, 2) Realtor Walk-Away Full-Service Option.