As far as your loan options, discuss that "Solely" with a Lender, as they will address all of the requirements including your self employment status and your current lease arrangement and how they affect qualifying for a loan. 

but it would probably benefit you more to have a lease and report the income. 

One is a lease agreement to rent the property the second is the agreement to purchase. 

He told the renter that they have to go after the lease ends, which is about when the violations need to be addressed. 

Rent is a market-reasonable $1995/mo and it's been vacant for just 1 month (due to breached lease) out of the last 8 years and 5 tenants.

The lease for the tenants who live in the top unit is over at the end of September and I am currently in the process of finding new tenants for the top unit.I have one potential new tenant (PNT) who is local and requesting to see the unit in person and a second PNT who is working in Seattle for the summer.

What is the best way to remove a person from a lease?

I have a tenant who can be erratic & make poor decisions that have effected my condo community and pissed off the HOA, neighbors & me to no end, so I've chosen not to renew his lease. 

Some specializations within real estate include:Transactional (closing attorney)Landlord/tenant/eviction attorneyAsset protection (setting up LLCs and trusts, and advising on the best structure)Commercial real estate (Includes negotiating leases and P&S)Contractor/construction attorneyPerhaps you want to fill us in on exactly what you're looking for?

Adjustments to leases, amenities provided, payment structure?