Just a few points for you to consider to hopefully get you on the right track: * Option to Buy and Lease are separate documents with separate purposes.* Tenants pay a NON-Refundable Option Consideration Fee in order to receive that option.

A lawyer may draft all the relevant documents/agreements in the manner that would best protect him/her at your expense if you aren't careful.

The more people to poke holes in the document the better.

Be prepared for a property inspection to verify things like condition and to provide supporting documents to show any deficiencies or obsolescence which would contribute to a lower value.  

Because upon transfer, you could violate the due on sale clause likely found in your mortgage documents.

As long as the timeline for your closing on the 1031 and the 30 day closing requirement for a cash Hud purchase coincide ,you should be fineYou will need a proof of funds letter from your facilitator showing sufficient cash available to closeI would also check with the facilitator and the title company you choose and ask if any additional closing documents will need to be signed by HUD and get them approved in advance if necessary .  

A high percentage fail and thus are easily seen as a scam.My LO was structured in two documents to avoid the issue AND both the lease and the option were NOT ASSIGNABLE. 

You won't have to wait on inspections to get draws, spend time putting documentation together, or worry about timing when it comes to paying contractors.  

RocketLawyer has templates on their websites and you get a document free (I am not affiliated with them but have used their services before).

The property has an assigned REO Document number along with a foreclosure date.