We are preapproved and ready to get going but need to explore our options and get as much good advice as possible. 

It may be worth speaking with a different lawyer or financial advisor to get a second opinion and weigh the pros and cons of each option before making a decision.

I initially selected an option that does not seem to apply and have not been able to make a change.

typically a BRRRR property is so distressed that it's not possible to purchase with conventional financing - so the usual options are actual cash from your own checking account (if you have it), or private money or hard money. 

If you have a lot of equity you have options.

Along with the FHA loan, check out the loan from the Neighborhood Assistance Corporation of America (NACA).NACA was formed in 1988 and provides an affordable option for potential first-time buyers:✅ No down payment✅ No closing costs or fees✅ No mortgage insurance✅ No consideration of credit score✅ Below market fixed interest rateThere are several requirements to be eligible, starting with attending one of their workshops.https://www.naca.comI wish you all the best.

Some banks offer better options versus lenders and credit unions. 

. $300K as I put a hefty amount down through that 1031 exchange).Current offer on the table proposed by my broker:$600K Purchase price7 year lease with option to purchase within 3 years for an amount equal to $600K less what they would have otherwise paid in principal under under a 7% loan for the same period). 

Life can change so fast, you don't want to be locked in.....One year lease with incentivized options.

I personally would do the first option.