This is purely cosmetic damage, not overly extensive, but notable enough and gives my appliance a junky look.

My initial reaction is that the 3 bed 2 bath would be more desirable to both tenants and potential buyers in the future. 4th bedroom would be purely for appraisal value, push comps, and increase rental potential. 

Is it purely an appreciation investment?

Are you looking to owner occupy or pure investment?

Pure capitalism would dictate that they mind their own business. 

If you look at properties purely based on price per foot, you can find some magnificent deals there.

Besides, this is purely a lease and option of 3 years or less......This constitues landlord tenant law on the lease, and the option is just that, and option they can choose to exercise.I'm not saying I know everything in the book, but I certainly do not ever do anything that comes anywhere close to not complying with the laws on the books.

Change the batteries on Daylight Savings so you remember when it was last done.

Having the additional equipment, batteries, controllers, inverters etc. can be daunting for a home buyer.

So I feel it’s best to do both.If you are looking purely on a cash flow basis, then theoretically active investing can give you greater cash flow.