The units are in great condition except for one unit that needs updating.

No legitimate title company in Texas would provide title insurance under present conditions.

Even if they were renewing an option and there was deferred maintenance they would request the seller fix things.Maybe your idea of acceptable and workable condition is different from theirs.

2. my second Option / thought is to use my VA loan, and purchase a nicer home / one that will rent for $1,300 - $1,500 a month ( afer the 1 year O.O. rule is meet ) , and plus I can technically get in a " Future " rental for 0% down .I could find an REO/foreclosed property that needs minimal repairs ( since VA loans are quite strict on the condition of the property in order for it to qualify and get approved for a VA loan ), and then do some updates ... paint / flooring while I live in it for 1 year , and then repeat the process of doing a Cash-Out refi and use the money for a down payment of 20% down on another $80,000 - $10,000 property.... wash ,rinse,repeat3.

@Ken Morrison, to tag someone on mobile devices, it works the same way as on a computer.

I have not inspected the house yet or met with the owner in person, so I am unsure of the properties condition, but I would guess the current value in the $25k range.  

., the court found that in determining unconscionability, the trial judge may consider: 1) the amount of the proposed rent increase; 2) the landlord’s expenses and profitability; 3) how the existing and proposed rent compare to rents charged at similar rental properties in the geographic area; 4) the relative bargaining position of the parties; and 5) based on the judge’s general knowledge, whether the rent increase would shock the conscience of a reasonable person.In my opinion if you're basing the increase on market conditions and not on trying to take advantage of anyone or increase the rent as a way to eliminate a tenant you'll probably be fine.

should not command a 6.09 cap in any market condition.

Example: The optionee makes this option due to current economic conditions with respect to the ability to obtain financing at favorable interest rates without the intent to purchase at this date.  

Additionally, a vacant property with no utility services, especially in winter months, can be a substantial increase in risk and the mortgagee both has the duty to protect the property and to notify the insurer of the changed conditions thereby increasing the risk of loss"