Your other observation about buy, rehab, and rent is also right on.

I read Craig C's book on HouseHacking but I didn't observe anywhere in the book where he covers this dilemma. 

That's an interesting observation.

The third is of course observing these criteria in order to protect the two of us. 

Your observation is spot...and the composition of IRR is important to many LPs and to the risk in the opportunity."

Review the tenants lease and observe the language pertaining to lease expiration, does the lease automatically review for one year if either party has not submitted the proper written communication to inform the other party of its intentions to stay or vacate the premises?

From my observation I would say that Sioux Falls is growing with all of the construction going on there I would say the appreciation for homes is also growing.

We went to closing when I observed the full amount going to me and my husband rather than paying off the underlying lien...it happens.

These buyers need to "juice" the potential rent by obtaining additional revenue through utilization of a purchase option, marketing the property to buyers unable to qualify for a mortgage but having and willing to pay extra each month above market rent to lock in a purchase price or believe that they are "building equity".The SAFE Act and the CFPB have placed some restrictions on these lease option agreements, so a much more careful following of agency regulations has to be observed by real estate investors doing these transactions.  

If you document properly with pictures and/or video, it should be clear to a casual observer whether the damage is caused by "ordinary wear-and-tear" or by abuse/neglect.In every case, I personally consider whether I'm able to defend my charges in court.