You can also structure in some additional terms about who and how significant repairs are handled, but that will also tend to tip in the owner/investors favor.* When selling a property on a lease option, realtor commissions are not necessary.* Check your state laws and talk to a REI attorney and escrow/title company about facilitating the transaction and all the needed paperwork for your area.

In a down cycle the class A to B type stuff tends to get hammered with little rent increases to flat or even rent reductions.

I see now the 15 is price reduction. 

( addition tore off, or are you exaggerating the roof)  based on your project details, id guess 45k+ in rehab .... building a second story would be out of the picture for me.  

At which point I would have to come out of pocket ($18k additional for $80k total renovation) to succeed in renovating the property to its full appraisal potential. 

Will you need to put additional time and money into this to make it a viable rental?

There is going to be a special assessment soon of about 2,000 + 2 years of an additional 150/month.I can't deal with tenants calling me constantly with every little thing that is wrong (my pipes tend to clog) so rental would be contingent on tenant handling these things on their own.If I do sell, I would put the money in a mutual fund.What do you think?

@Ryley White the $10,000 would be in addition to the purchasing cost. 

One is a 3 bedroom 2 bath built in 1953 and the other is a 4 bedroom 2.5 bath built in 2007  (built as addition with full permits).

In addition, unlike the STRs, there has been little significant push for rent control.