They may have a valid reason for their price - even if it seems crazy to you and me. 

Yes to the new agreements...as follows:1 - Sign an addendum to the original rental agreement that releases tenant one from that agreement.2 -  Sign a new rental agreement that includes only tenant 2 and husband, and also states this agreement makes the other agreement null and void,3 - Since tenant 1 signed an option agreement, as long as the option period in that agreement is still valid, you can't sign an option with tenant 2 and hubby.4 - Once option period from tenant 1 has expired, you can then sign an option agreement with tenant 2 and hubby

@Jenni UtzYou raise a valid point about pending foreclosures for people who are currently in forbearance / deferring their loan.

A lot depends on the asset class and how the deal docs are written so there is subtly and nuance here, but in general if a sponsor has successfully raised a sizable amount of money into a fund it probably means that other investors of an ilk equal to yours have validated this is a good risk-adjusted bet. 

I’m actually in the process of validating my assumptions and expectations in regards to my goals and criteria.

.- Having roommates to help you pay down the rental property is a perfectly valid, tried-and-true strategy- Regarding neighborhood, in Minneapolis with $250k to work with I would focus on Northeast Minneapolis.

The only way their 1031 would be valid is if they transferred it to a disregarded entity for the current title holder.  

I guess my only problem with that is, I think I can look at multiple offers if I wait til Monday to make a decision and have everyone’s offer valid for 5 days.

-If the seller refuses to serve notice as part of the sale, I would need to serve the 60 day notice myself right after close but that would still risk having me move in after the 60 day FHA window, and I would need a valid reason for notice correct? 

I think CapRate is a valid measure of return.