Hopefully, I would increase the value of the property in 1-2 years and be able to refi out of the FHA mortgage.

If you truly don’t believe the property will appreciate and that rents will increase faster than expenses you should NEVER buy that property.

Utah has some of the cheapest tax and insurance rates, but their rent to price ratio is horrible and rents don't keep up with housing increases like they do here. 

The increased rent is a good sign. 

Louis Fed shows the delinquency rate on residential single-family mortgages, and proves there's a way to spin this data to show that delinquencies are increasing rapidly.

This is NOT Business Credit.By establishing a separate corporate credit profile on the EIN Number (separate from the business owner's SSN/FICO), investors can access substantial business credit lines, capital for property acquisitions, and renovation funds without personally guaranteeing the debt.This approach creates a powerful financial firewall between personal and business assets while potentially generating a significantly larger (ROI) through reduced interest rates, increased borrowing capacity, and the ability to scale investments more rapidly.The education gap surrounding EIN corporate credit means savvy investors who understand and implement this strategy can gain a significant competitive advantage.

With inventory slightly decreasing in November, do you anticipate increased competition heading into the new year, or are higher mortgage rates keeping activity balanced?

During turnovers they fix everything, and by everything, I mean they look for anything that they can do to increase the SOW in order to skim as much as they can off the work costs.

That being said, there's no way your tenant will be happy with the increase so you may take that into consideration.

From your options, #1 is a big sink of cash and I can't tell how much that increases you rent. #2 is a no due to cash flow negative. #3 is the way to go.