There are two options I have offered and I want to get a check on here if I am off base with my offer or if I need to push harder.

It's all relative and subject to change based on each individual person.

Down payment of $13K including reserves sounds pretty low to me . ( Based on Maryland )

Based on what you've said here, I'd probably rent it out as-is for a couple years and then 1031 in to a higher quality area. 

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

It's called a payoff statementif it's a big lender you will not buy the loan as it will take forever, you are better just paying it off. you then can foreclose based on the total balance owed to you which is both loans and any accrued interest. regarding fixing property or selling as is, that really depends and needs to be evaluated on a case by case basis 

I will likely get approval based on my zoning.

But, my answers are based on my actual experience being a real estate investor for the last 12+ years.I am 41 years old and currently own 160 units.

“Jorge, this is pure gold—you’re laying out the exact playbook for maximizing every inch of a property’s potential.

Because based on those answers, you can just get a conventional loan.