I check in this property several times and wasn’t satisfied, as there was no progress.

The safest bet is to try to get a variance from Union City. though clever, your combined unit lease agreement would likely cause trouble if ever scrutinized by the Tenants or the municipality. 

Our RV insurance policy is through Progressive and specifically states that it does not carry over to any other properties. 

And that gave us a feeling of security that allowed us to take "riskier" bets.

As you concede, you and your tenant buyers made opposite bets on appreciation over the 3 year period in setting the option price. 

I think the outskirts are you best bets!

I'm ready to progress my researching past Zillow and the Tax Assessor's website...I am definitely open to distressed properties, tax liens, probate, divorce, etc.

To avoid partnership issues, 50/50 is likely your best bet.

i think the gift basket may be more beneficial to real estate agents to get referrals and possibly to get new tenants. i bet that was nice, i wouldn't forget that either!

So starting with an agent probably won't work.Your best bet is to start networking, going to meetups, etc.