Paying water is fine, but I would never consider a property where I had to pay gas and electric, it's a nightmare waiting to happen.  

2) What methods do you use to determine a comfortable number pay the lessor per month while leaving enough  wiggle room to pay mortgage, cover for vacancies, repairs, taxes while having a good cash flow left over with the intent of saving this to use for the 20% down payment when the option is exercised.3) Would you pay for an inspection up front before the contract is signed, or wait until it's time to exercise the option?

I tried out Docusign and can't wait until it expires to get Dotloop again. 

I've done thousands of foreclosures, literally.

I am currently waiting to here back from my real estate agent about how much they are paying and rent and how long their lease is.

Does that mean I have to switch everything over to my name still or shall i WAIT to speak to my tenant and see if it’s okay to keep it in her name?  

Small multi-families seem to be in high demand right now so if you see anything that somewhat sparks your interest, don't wait and go see it as soon as possible. 

In order to free up some money, we need to wait until we can refinance in 4 months.

So...my question is...Should i wait, save more money to qualify for FHA @ 5% or try and find a foreclosure and work on it myself?

Wait for the state to put a lot of the same (or similar) model vehicles up for bid at the same time.