But on the day after the rental term ends, there should be a radical escalation of that rent unless you agree to an extension in advance. 

If they plan to issue the K-1 after April 15, you should file an extension.

In 2015 I had a contractor add a 1000 sf extension onto my home.

Partner with someone that has an extensive track record, and leverage that to build your own track record. 

Even more so than competent, you hope they can be an extension of you so this can be as passive as possible.

Looks like I'll have to revisit the possibility of option 3 only after I've done more extensive research on areas that may have historically appreciating positive cash flow homes. 

They have their own requirements which have been written about extensively elsewhere.

The upside just wasn't there in the time frame I was looking for to accept anything less than a killer deal.My timeframe has nudged slightly since as I do see the extension of Charlotte further down as I've noted above.

It's basically an extension of their own land.

If you can get an extension you can shop around it both type of properties  are eligible under conventional loan.