Then, you can slowly improve the property or put in sweat equity, and when you have sufficient equity refinance conventional and free up your VA eligibility and do it again.

You will need to repair your credit, clear your bankruptcy and start saving every penny you can.......frugal life style going forward as your life situation improves is mandatory.

I would appreciate any feedback, suggestions, comments or anything else that would help me improve the success of my lease option business. 

Can I use the current rental income, or maybe the income after repairs and improvements to qualify for  the mortgage?

Also, if I am inspecting a tenant occupied property, I most likely, unless if the previous owner objects, I ask the tenant to give me a list of known issues and desirable improvements, written or verbal.Good luck.

(B) "Real estate" includes leaseholds as well as any and every interest or estate in land situated in this state, whether corporeal or incorporeal, whether freehold or nonfreehold, and the improvements on the land, but does not include cemetery interment rights.

But once you buy the County looks at what price (compared to the value they assessed for the property previously), and then as you pull permits and make improvements, this tips them off to look at the value too. 

That could give insight on where/how you can improve on your next deal.

However, will probably do some improvements to it, if I decide to rent again within the next 365 days.

Most of the  value here is improvements he has made and has depreciated  over the years.