It's a 5 bed 3 bath.

In my opinion this will not lead to long term success - if that is of any interest to you focus on saving up enough to purchase your primary residence.

For a 3 bed 2 bath house it needs laundry.

Yes you can find properties which you will be able to purchase, but ROI will be near zero or negative. 

Purchase price: $350,000 Cash invested: $10,000 Sale price: $435,000 Primary residence converted to a rental after 2 years.

so all put to bed here.

My point is even with a significant discount on the purchase, it will not be easy to find someone that will be eager to purchase.  

And even it's SF when you purchase it, again because it's not 100% MF including the county/city classification, you can use rental income from both units to help you qualify for future investments.Option #3 is something to use only when you're not willing or able to move into the property.

I don't think I can ask the seller to evict prior to purchase, although that would be the best scenario.

I have the option to buy a 1,300-sqft 3-bed, 1.5-bath house in South End neighborhood of Stamford, CT, from a family member before it goes on the market.