I am California resident with one rental property that has just over $300k in equity and is barely in the black each month (less than $200). 

I doubt the lender will talk to you if you only have a bare contractual right to purchase. 

Obv LLC but how would I make the entire flow work if they also want to create an LLC to participate?

Around ten years ago, I was looking at real estate in Fortaleza, where I was invited to participate in a private sale preceding the launch of a landmark pre-construction project on the city’s main boardwalk.

I always look for places where bare wood touches the floor to see if water has wicked up into the wood. 

If the rental and your bank can bare it and it sets you apart then it is something, as an investor, I always consider. 

So the 1% is something I think about at the bare minimum for the deal to make sense.

I know how the title of this post may sound weird but bare with me.

@Connor Rice, 20% COC on just 3.5% deposit, with well over $200k of debt that barely pays for itself after you move out (needing to be paid out or refinanced after 6 years), with only about $10k supposed discount to begin with? 

Baring any major repair requirements, I expect the deal to go through.