If you're content with holding just this property for now then the cash flow + lower rate option may be best.Hopefully you find helpful!

They are definitely more expensive though 

Hi Debbie - I can possibly do a second position loan against one or both of your rentals to help you cover the remaining expense so long as the property will not be owner occupied.

In my opinion, they are treating  houses in lower cost neighborhoods like medium to high end flips, but selling to investors, which I don't believe is a viable business model. 

Budget for Unexpected Costs:Always have a contingency fund for unexpected expenses.

During the Due Diligence Period, the Buyer shall have the right to conduct, at its sole cost and expense, any and all inspections, examinations, appraisals, surveys, environmental assessments, and other evaluations deemed necessary or appropriate by the Buyer.Financing ContingencyThe Buyer's obligations under the PSA shall be contingent upon obtaining financing in an amount and on terms satisfactory to the Buyer, in the Buyer's sole discretion.

and they come in 2 types: the old 1920s which have great cur appeal, but are expensive to work on and the 1960s which are much more economical, but look like a shoebox. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

It's also an expensive private school.

It's very expensive and time consuming to develop raw land.