A second late payment is followed by further training and a ultimatium. 

If they do exercise their option, the lease contract is terminated and a new owner finance contract begins with monthly payments of $1K/month (same as lease agreement) and a balloon payment for the balance is due on the 24th month. 

However, the sponsor should have provided you with their projections/estimates/forecast of the property's cash flows, and a sample return on your investment (by year).

It's something to be aware of, and a reason to see recent payment history if the building you purchase is tenant occupied when you complete the purchase and close.  

And if one year you unexpectedly need to replace a roof and a furnace, that place needs cash instead of generating it.So I'd be curious about how much you have to invest and how much you need to gain in monthly cash flow. 

After I'm done with that I spend another 2+ hours a day putting together photos and a full property analysis so that people out of town are able to see the property in its entirety. 

Hi Mike,  Lets connect.Im a local Real Estate Broker and a small time investor.  

You are operating a business and as such to avoid ending up in court you must know the law.

Statistically an eviction process takes one to two months in Georgia but there are ways a tenant can stall and a malicious tenant may cause more damage.

There's no real 'fair' way to truly separately meter the natural gas used for the different units, unless you get into rabbit hole land of re-inventing a wheel and a series of sensors measuring heat and air flow within separate ducts, on your (customer) side.I'll comment on each option individually and your decision will be numbers driven.