The loan programs for 1-4 units have more favorable terms depending on if you're buying with income with a conventional investment property loan or having the loan underwritten by the rents with a DSCR / rental property loan. 5-8 loans generally have tougher underwriting and the rates are higher if you're looking at DSCR loan options for 5-8 units. 

Thanks Nathan, I've began looking at non section 8 tenants and am finding great options!

We are an hour west of Tahoe in an extremely rural area with very few options when it comes to any and all services. 

Hakim, It reads like you want to do a lease with an option to purchase. 

In high appreciation markets, accelerated payments or buying cash flow is a horrendous return compared to other options.  

I'm not sure on what financing options are available in this situation.

So I'm not sure how that would affect this option but it might but this option costs $0 in capital to you - unless the contractor wants like a 10k deposit or something.

We've considered the two options:1.

Then your options open up even further.

@Joval Mathai best option would be to work with an investor agent or wholesaler.