On the other hand, these tenants have been fantastic (my best so far) and renovating with them present would help generate more goodwill and perhaps lead to extended tenancy and other network benefits (They are both nurses and may have co-workers who are looking for apartments). 

Essentially this would also put the $145k (more or less) in my pocket to re-invest and make money on elsewhere, while the rent would/should cover the monthly mortgage payment, property taxes and other (minor) maintenance.  

If so, would you be able to reap the benefits of the card (miles, rewards, cash-back etc.)?

This way, we could have the benefit of locking in the option to buy the property but we wouldn't have to qualify for the loan just yet.The way I think this could turn into a "househack" of sorts is if we found a different property to buy, instead of following through with the option, and then turned the lease option we were in into a sandwich lease option and started making money on the property after we moved out.

That essentially means either he's paying or I'm paying out of pocket for the differences.

Taxes are $6000, manager lives at site in a separate building which is the office essentially.

Essentially, we would lose money on the house, then risk all the greatness that comes with renting on what we would like to be our home for a considerable amount of time.

Ya the tax benefits seem pretty straightforward, it sounds like Treasury still needs to provide guidelines on funds and how they get certified (or something along those lines).

My wife was also in the military, so we had two VA loan benefits we could potentially use as needed. 

There aren't many renters in the area, and while we all know many great renters that would give you the shirt off their backs, there is a negative stereotype about renters that exists.While there is nothing they can do legally, I like my neighbors, want to have a good relationship with them (they have my number, and would likely text me if the renters are causing havoc, for both their benefit and mine).Have any of you experienced this, or have any tips on how to "break" the news?