If your goal is a dependable passive income stream, the most important location selection criteria is that rents and prices keep pace with inflation.

You now control the property and the management of it and generate the income stream you are looking for (providing your ability to have a gross income from the sub lease that exceeds that of your lease) and at the same time, avoid all the costs associated with a sale and transfer of title as well as your future step up basis.

Some of these guys are pretty bright and I would consider bringing them in PT/FT if we could keep a lead stream coming, but am trying to find a good way to structure and incentivize them in a way that benefits us both?  

A few months later now in the winter the windows leak so much water inside that you can see streams of water on the window sill.

I think this tells me what I need to do for my policy setup and with Nancy's stream of advice I have even more to pad my business policies before getting a tenant in there.

Offer 2 gives the seller a higher sales price and longer payment stream, but you only have to put $5k down.  

As you get more comfortable with the area then you can certainly get your license to give you more flexibility to look as you please and provide additional streams of income that being an agent can offer. 

Then, I can share it w/ photo stream, dropbox or google drive.

In a flip profit is a one time thing, but buy-and-hold has multiple income streams.

Minor selling points are having more space and privacy, a streaming HDTV, bbq grill, and outdoor recreational areas.