I find condos/townhomes to be easier to manage out of state because the HOA handles a lot of the maintenance, just be aware of condo fees and find a place that is reasonable like $300-400/mo or less if you are lucky.

Can you raise rents, reduce expenses, or change its use (e.g., short-term rental, mid-term rental)?

Your age might raise some eyebrows initially, but as long as you're professional then you should be good.

The idea of raising funds from new investors to get them involved in selling lease option houses to tenants does not pass the sniff test.In a nutshell, this is why lease option is so terrible.

This motivation lead me and a business partner to start Raise the Standard Property Management.

There will always be people who want to rent by one but I wouldn't count on one raising property values - I would in-fact assume the opposite.

True re the prior poster, re this helping the seller save their credit, if you buy sub-to you will dramatically raise their FICO since the mortgage will show on-time payments.  

I am not aware of them.

And the rents have recently been raised. any suggestions.

By observation from a few I've seen in the area:1) Find old guy, hopefully with limited faculties not aware of the market value of his property2) Tell him you love his place and will enjoy owning it and that you're his good buddy who cares about him.3) Offer him at least 10% under FMV and tell him no one else is going to pay that much.