They might ask for some compensation, but if it helps it may be worth it and cheaper than option 2.     

I rather have one property valued at 500k that cash flows 10% a month.That being said, smaller and cheaper homes will always need owners and to those who like to specialize in that niche, good for them. 

He suggested that I exhaust my cheaper options before I agree to his fees and high interest rate.

I have noticed that a lot of rental units have furnace and hot water heaters in  the unit where the tenant pays all utilities,is this because it is cheaper in the long run to add the furnace and hot water heaters during the rehab and /or easier to just let the tenant pay everything.The property I am looking at does not have anything in it as far as heating but maybe the other owner was starting to run pipes for baseboard heating.I want to buy a 4 unit with a possible unit in basement so my question is, what choice should I make for the heating,which one is cheaper,more convenient for both  myself and the tenant.I do have a choice but don't know which route to take, or what are the questions to ask myself to make the proper choice.

You will learn a lot in this process, but if you have no plans to use it for more than the learning experience and MLS access, you can do both of those things in other and easier / cheaper ways.I do have my license, but like Uriah, it has factored greatly into my business model, and will even more so as I progress.

Not saying it's not possible to get deals, I'm saying it's become very expensive, and it may be becoming cheaper in the near future.

Wooden homes are cheaper to repair, but can have pest infestations.Flood Plane: You can look up a property's potential flood information on FreeFlood.com.

I generally try to buy properties that need some work for cheaper and then do the work myself to improve the equity and resale value.  

So yes could be done, hard to say which option would be cheaper offhand.

I am leaning more towards laminate or vinyl flooring because I feel carpet will not last as long but I also know carpet can be a lot cheaper.