A vast majority of them have 100% equity which is a beautiful gate to seller finance which I feel will be the most profitable.

Owner agrees to maintain sufficient and prudent all risks property insurance and that the Manager shall be an additionally named insured.

The vast majority of people dislike or even hate their landlord.

I have had some refinances come in with RIDICULOUS appraisals...luckily we had sufficient equity to make up for this stupidity.

Would a recirculating vent be sufficient, or should I explore other options like a microwave with a vent or a ducted ventilation system?

Even that may not be sufficient.

What cash-flow, if any, you plan to generate from this property.If you are short on cash and/or your rental projections will be tight, then the 7/1 ARM might make more sense.If you are good on cash and/or your rental projects show that you will be generating sufficient cash flow, then the 30-year fixed might be a better option.I have used both mortgage vehicles for my properties, dependent on my situation at the time.  

Supply side:  Vast majority of homeowners have very low fixed monthly payments and a ton of equity in their property. 

All that to say, if you have sufficient evidence that the market is showing the value of the home is different than what the appraisal comes to, then appraisals should not be an issue.

The vast majority of housing needs are already covered elsewhere.As for Matt's comments on 250SF being non-permanent space even if well designed, I'd agree.