Long story short, gives you a lot of options and depending on a value add play and negotiations, it won't take as much money up front that could be used for renovations.

A DBA would be a cheaper option.

See what your options are and make a decision with legal assistance.

In my opinion, the second option is a better approach.

lease option type of set up to with the down payment as a non refundable option payment.sounds like a big enough project the buyer is probably substantial and real.. 

And finally, of course, the last option is to just keep saving and waiting until you can afford the house you want.

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

We always teach Lease Options first because they are the easiest and safest.

Looking at the rough numbers and we are comparing apples to apples ie: area and appreciation, I think the first is a better option because the cash on cash return from the investment cost to rent ratio.

As previously mentioned, Cash for Keys may be an option.