My thought is that if you, as the owner, are living in your property, leasing out part of your home is allowed.

You should ask for and get: Rent roll, leases, statement of income and expenses-last 3 years min-bank statements as mentioned above, list of security deposits for closing, and do a professional inspection.Would not hurt to verify taxes are UTD and no liens registered.

I have not done a lease option yet in my investing career.  

https://www.har.com/content/newsroom/Houston Real Estate Highlights in May: Single-family home sales rose 1.0 percent year-over-year, with 8,157 units sold, the second largest one-month sales volume of all time;Days on Market (DOM) for single-family homes increased slightly from 51 to 52 days;Total property sales edged up 0.6 percent with 9,721 units sold; Total dollar volume increased 2.0 percent to $2.8 billion;The single-family home median price rose 3.4 percent to $243,000, which represents an all-time high;The single-family home average price increased 1.3 percent to a record high of $305,511;Single-family homes months of inventory was flat at a 4.0-months supply, the highest level since last August and equal to the national inventory level;Townhome/condominium sales fell 6.4 percent, with the average price up 2.5 percent to $213,912 and the median price up 3.0 percent to $170,000;Leases of single-family homes declined 1.8 percent with the average rent up 3.7 percent to $1,845;Volume of townhome/condominium leases dropped 22.6 percent with the average rent up 1.0 percent to $1,580.

My husband and I are looking at an investment property that comes with a tenant locked into a lease until March 2019.

I use 10% for management, but have had clients pay everything from 16% (10% plus 1 months rent every lease signing) to a flat $50 / month.The real questions - what value add opportunities are there?

When does the tenant's current lease end?

I've decided to start with pre-foreclosures, Lease Options, and Seller Financing. 

My total cash to purchase the property will be $6,500 + closing.With a contract for $43,500, I don't think there's much room for a wholesale opportunity & a 30 year loan would increase my cashflow by about $40/mo but I can't seem to find one right now.The property is a 3/2, 1,000 sq. ft. the lease renews in August, month to month, at $825.

If you don't have anyone you're that close to, perhaps you can find someone that you know/like that will allow you to sublet part of their house for 2 months with a formal lease document (so they don't throw you out when they're sick of hearing crying kids :) ).