I've done a lot of research and even worked on running numbers for certain options (just as an exercise), but I'm now looking forward to jumping in.

Flagstar may exercise the "due on sale" clause if the name(s) of the buyer are not the same name(s) as the members identified as the owners of the LLC.

Hi Treza,Not sure where you are in the process there, but when your ready to exercise financing options please reach out, it's very difficult to find a ground up program for inexperienced borrowers without having an experienced GC sign on the loan with you which in turn is not easy to find. 

The exercise of underwriting helps you sift through those to find the 1 out of 10 that’s worth taking a closer look at.

Learn from the exercise and do better on the next.Good luck! 

That clause avoided a lot of headaches when the seller eventually exercised their option.Seattle permitting can really be a curveball.

The lender at that point can exercise the Due On Sale and it becomes a problem for the subto buyer, who now has to find new financing or lose the house to foreclosure.

Then figure aprox what your refi numbers/value would be given those rents/expenses at a stabilized point,  and that to me is your "all in" - From there it becomes an exercise of what it will take to get to that point or property condition?

.: I just did this exercise - I liked ranking them so I could look at the big picture. 

Once they exercise seller financing, the property is sold and all 1031 rules apply. 1031 has specific timelines.