The buy-and-hold strategy you've been offered certainly has its merits, especially with the 100% financing structure.

I was taken aghast although I did see that some of the repairs they "required" had merit. 

I dunno...for starters it sounds like nonsense and for seconds, I don't think a judge anywhere will understand any of it anyways - few people do and it will take some serious lawyer dollars to make that case understandable if it even has merit in the first place.

Opening an account still has merit - as it will immediately clear the check even though funds will not be made available to you for withdrawal intil hold expiires.

I expected discussion on the merits of each for my goals, even while driving to the other places, but there has been little to none.

Obviously do this carefully without having them burn the place down.Option 2 would be to sit down with them and to gauge their financial status and their level of merit as good tenants.

After having read about the universality of the rule on here and other sites, and having been convinced of its merits I guess I just feel like I'll absolutely be spinning my wheels if I settle for any property who's market rents don't adhere to it.

At the same time, achieving $100/door on a place that rents for $600/mo is a better return than $100/door on a unit that rents for $1,000/mo as the investment would likely be less in the cheaper unit.I agree man, vacancy risk increases as number of units decrease, but this isn't a debate about the relative merits of 10 units vs 100 units. 

My business partner and I are debating the merits of adding a 1-car garage (that's all there is room for).  

Coverage can also be more complex where the current rate is xxxx but then when you go to get it, the only coverage you can get is yyyy so i think that case has merit or flood map redrawing which is a different scenario.