Any thoughts on writing an LOI, or would you suggest an offer?  

I called Zillow and they told me they don't handle lease cancellation or changes but suggested to contact local attorney (I am in Texas/Austin). a) Take some penality and allow tenant to break the lease. b) take re-letting fees, list the house again and current tenant is bound to honor until it gets leased.For both a) and b) I will still have to contact attorney as Zillow does not let me cancel the lease but only mark the lease cancelled once it is done. 

The sales volume and quick turnover suggest that 28303 is highly attractive for investments in smaller homes catering to young professionals or small families.Zip Code 28304: Although there's significant appreciation in larger homes, 3-bedroom houses here saw a notable 30.1% price increase, and the average days on the market dropped from 50 to 17 days.

Suggestion: Put up blinds of some sort or window coverings.

I was wondering if I can use my RRSP to give to the rent to own? 

Under the FHA rejecting a person for the ESA dog is a form of discrimination against those with disabilities.Your post suggests that this person has passed all your screening criteria except for the ESA dog.

I would suggest you start getting some legal representation and then talk to the previous owner. 

I was wondering if any can recommend any good property management companies in the area for SFH's, duplexes, 4-plexes? 

What suggestions do you have about it?

Second I would suggest you come by for a weekend and drive the city street by street and just take notes.