My current situation is difficult.

So, at this point I've decided I need to just talk with someone who does this for living and knows the laws and possibly tax advantages to go either route given my situation. 

Our investor base is exactly how you've described your situation....busy, don't want to manage their own, and live in areas where they can't get the right price-to-rent ratios. 

Do I have no case in this situation?   

I don’t make a lot of money in my current situation.

If you can't find a proper deal in the meantime consider trying to find a more flexible living situation such as with a friend or a short term situation via craigslist.

It seems like someone with the best intentions in the world can get caught up in a situation where that "lease option" on that house they bought "subject to" goes bad, and now they're looking at a potential felony (depending on the state) if they don't keep up the payments.  

I have been in similar situations and have rarely had anyone move out because of the increase. 

The house is under a reverse-mortgage so it does complicate the situation a bit.

Tenants sometimes have wild imaginations when it comes to these situations.