But I did not like what I saw, anything under what Costar would rate 4 stars did not appeal to me. 

Your third option is really appealing and quite under-discussed.

BOI is paused again, different 5th Circuit appeal struck down the stay

Until whoever is sending you these opportunities has the conversation with you on how much you'd like to make on a deal, how you figure your ARV and how you plan a rehab/ costs they are likely going to continue sending you opportunities you won't find too appealing. 

If they appeal offer some cash for keys.

The appeal, in my experinence, is a steady local base plus some vacationers passing through.I’ve got a freind who scooped up a place near the Ozarks and found that while huge cash flow was harder to come by, the consistent occupancy gave them fewer headaches over time.

I don't have a garage or any parking so that could hurt the monthly rental appeal. 

The renovation aimed to modernize the property, enhance its appeal to potential tenants, and maximize its long-term value.

Since your building, I'd go a little bigger and make it at least a 3 bedroom 2 bath so that it appeals to a wider audience. 

Most of the core aspects of your LTR lease remain, but there are a few tweeks that I think make MTRs easier to deal with and more appealing to your customers.