So the paint was peeling badly.

The author does not manage his own properties but I do and it's not so bad. 

Just go on the Housing Authority website and search for the Housing Choice Voucher Program.  

No deal is better than a bad deal. 

Option 3 would be my choice if you aren't happy with the area of a house hack you won't be happy living there.

My only choice at this point is an FHA 203K, which will allow me to update it and convert it back to a four while I live there for the first year. 

Ten years ago 100$ a door worked  in non appreciating or areas with historic pricing that really never moves  IE local investors all back into the deals the same.. 100. a door never really worked.. you one bad turnover or a few months skipped rent or eviction from going negative.. and if there is no upward movement in value and I mean REAL appreciation not just 3% a year on 50k home  that's a whopping 1,500  which you would never realize. 

However, I've been reading reviews that the in-class is the better choice.

Doesn’t look too bad .

Some conventional lenders won’t finance it either depending on how bad it is.