I imagine after 28 yrs that apartment needs some upgrades.  

Ideally I would be compensated for additional repairs and upgrades through my construction company.

After we finish the repairs and upgrades, we want to refi back out and get as much as we possibly can to put towards another deal we already have lined up. 

P&I 120/mo.I plan on using any profits for upgrades

We did a full cosmetic remodel along with adding 2 more bedrooms and upgrading electric throughout.

Is it enough of a value add or should I go with what we decided on from the beginning, a nice upgrade and quick flip?

The house needs about $5k in work but part of the reasoning behind selling via lease option is repairs & upgrades are the responsibility of the tenant buyer.

They also completed a 25 million series B funding in summer of 2019 that values the company at 127 million, which is a good signal for expansion.What appeals to me about this model, is you can go buy a couple acres of land ( Hipcamp suggest a 2 acre minimum), make some minor infrastructure upgrades and then build a couple A-frame tiny cabins, some yurts or simply just a clearing that would allow for someone to pitch a tent.

The previous owner was an older lady and the house needed significant upgrading.

roof, electrical, plumbing, hvac, etc. i hope your inspector crawled under the house. if he didn't, i would hire somebody else who will. as far as your financing is concerned. getting a 5% conventional should've been the way to go (with fha you will still have to prepay your mip that could be significant and have the pmi that you can't get out of unless you refi). if it's still possible, i would look into a homestyle loan from fannie mae (it's like a better 203k) that will finance your upgrades: https://www.fanniemae.com/Home... having a knowledgeable lender is key, as some don't know about these products.