I couldn't ethically in good conscious post some of the calls I've had.

While some would hope they don't get caught during the option time period, the ethical thing to do would be to approach the loan holder and get approval to continue with the status quo until the option exercised.  

I am glad someone in this city seems interested in ethical investment, but I can think of a few reasons why they might accept a offer that low:1.

There's a way to do this business honestly and ethically.

My criteria are documented and I have been refining them after each property while I learn what I really want in a tenant (note that I do not refine "during" the process as that would not be ethical).

They offer a line of credit to purchase homes at 1% interest with a high 1x down payment between 6-9k which is taken out of the loan disbursement.Hoping to get some insight as to whether they are a good/ethical company to work with.

Do they do what they say they will.8) Make sure your partner has the same work ethic as you.9) Make sure that you find a partner that can communicate.

If you want to be an unlicensed broker with no ethics, etc then piper is the guy to follow.

And if not what's the proper way to go about it morally and ethically correct?

I'd then create a post on BiggerPockets saying where you are from and that you're looking for advice on how to find an ethical mentor in your area.