Initially I was all over the place and looking single family properties that needed light rehab, properties with mother in-law units, multi family, pretty much everything residential. 

Always assume to initially receive negative or pessimistic reactions and opinions with little to no substance.

I was hoping you guys can chime in on possible reno costs to help explain and make an accurate initial offer (doing my best to get a contractor in), how to make this smooth for him while he’s here, and any other ways to put him at ease to lock this up.

My current/initial focus is a SFH/small multi-family unit rehab project. 

So Don, my understanding is that an Option is a one way agreement in which the buyer has full control (to purchase) and is usually initiated to "buy time" - such as in the case of a feasibility study for commercial property.

The description says that the basement has areas which need mortar repairs, a leak in the chimney, and signs of moisture in the first floor bedroom, but you've allocated $0 for an initial repair investment. 

I actually now have $111,413.60 (18k CF + $93.4k Sale) after 5 years, from my initial $50k investment. 

Purchase price: $298,000 Cash invested: $29,000 Initially bought as a primary residence.

Anyhow, my question would be how would the bank know what the initial purchase was for?

Yup, that was my initial plan for this one.