Also start talking to lenders now to understand their requirements 

In the last 18 months various states have instituted new rules, regulations or laws related to (1) need for licensure to wholesale (2) restrictions on marketing of a property in which you do not have ownership and (3) disclosure requirements when dealing with a homeowner that makes it clear to the homeowner that the contact signed with the wholesaler is not a definitive “sales” contract, therefore making it less likely home owners will sign4.

If you have equity and decent credit, a conventional Fannie Mae HomeStyle (or the Freddie Mac version) would likely be the better option instead of an FHA 203k loan (which will require a 3rd party HUD consultant to oversee the deal in addition to having the contractor involved). 

Lower Start-Up CostsTraditional real estate investing requires 20%-25% down, making it difficult for many to scale quickly.

It's easy to obtain, costs very little, and doesn't require extra, on-going effort to maintain.

Both what the resulting end product will be AND the capitol investment required. 

Using a HELOC for the down payment on the second home might be an option, but lenders may require you to wait a few months post-closing on the multi-family before approving new loans.The BRRRR-style approach could work if you can renovate and refinance quickly, but make sure the timeline aligns with your lender’s requirements.

I work with several who go to 600 or don't require a FICO for commercial at all.  

Only entertain this if you feel you can perform.A lease option will require a down payment, more than likely, followed by a balloon payment upon a payoff due date.

Do not expect to keep them and be prepared to have to evict.If the jurisdiction this property is in requires anything in place in order to evict such as rental licenses, etc., get them in place before discussing an increase with the tenant because it's much easier to get inspections and repairs done when the tenant cooperates.