Make sure you research multiple options to see what fits best for your real estate goals. good luck!

Typically you aren't buying a fixer upper with a conventional loan.

Many options available.

But STR has restrictions here (2 bedrooms in Raleigh) (hence the hybrid option) and there is often diminishing returns when it comes to price versus number of rooms in our market in the locations I focus on. 3 bedroom numbers often are stronger and more attainable price wise than 5 in core Raleigh.

Lol Have you done many lease options as a buyer over many year term? 

They have the option in which you do it with them and the other one in which they do it for you.

The voucher program typically determines the amount they’ll pay based on their calculations, and you don’t necessarily need to lower your listed price for utility allowances.

With the limited info, I would say #1 is your smartest option but there are a lot of variables missing.

Quote from @Alan Mills: Yes, I would agree with Chris and Bill, but if you have an option to get around this by putting it inside the house?

Kyle there are a ton of options here that you can compare.