Subject to money is a lot cheaper than hard money if I’m paying 4-5% interest instead of 10-15%.

I think you are making it too hard.

If they don't qualify for a loan due to bad credit or lack of a down payment when they start renting the house, they will have a hard time saving up the necessary money and repairing their credit in the 2-3 years during an option period. 

As I said before the hard part is finding a property not a buyer.

@Anthony J Robinson  Hard money loan if you're looking to flip it, or a local bank / credit union (portfolio lender) if you're looking to keep as a rental. 

Most people have to use hard money lenders to get financing for flips, and once they’re complete they either sell the property (usually within a year of purchase if everything goes well), or they’ll refinance it into a traditional 30yr mortgage (search ‘BRRRR’ for more on this strategy).Good luck with your first home!

@Christopher SochaIt is hard enough to get a value adjustment on a comp upward on a sale...and on a sale there is a comtract price to justify value.

Hard money I'm guessing?

I would hardly label these areas as low-income or needing any additional incentives for investment because there is already a ton of activity.

Which makes me nervous about unseen issues like asbestos, lead paint, etc etc.I plan on asking the seller for all of the closing costs - I'm not comfortable with the amount of cash I'd have left over if I have to pay them.I haven't seen the property in person yet so it's hard to say for sure, but from the pictures it looks to be in good condition other than needing some cosmetic work (paint) on the outside.Do I need to have 15k sitting around just in case?