If this is your tenant base then your rent roll may be high but your probability of actually collecting that rent roll number is low.

For paint touch-ups, the charge is less based on how long the paint should last.

I currently live with my wife and 3 children, so I'm not sure this would be a good option for me.

I'm also considering other options such as using a fix-and-flip loan to fund the purchase and rehab, then repaying it using the cash out refinance.

Are there any other options for us then to wait for a vacancy?

One thing I run into often are borrowers who are looking for loans based purely on the After Repair Value of a Fix and Flip investment.

And there is no alternative options. 

Your other option is to pay cash instead.

This should eliminate the homeowner (1) selling a property while remaining liable for the note (subject to), (2) tying  up his property with a “buyer” who has no intent to close unless he finds someone to pay a higher price (wholesaler), (3) paying above market rental for an option to buy that can never be exercised (4) purchasing a property from a fix n flipper who did shoddy rehab, (5) purchasing a property with nebulous legal title, (6) contracting for home improvement with a fly by night contractor who then puts a mechanics lien on the property and (7) “listing” with a wholesaler disguised as a Realtor who doesn’t put the home on MLS. 

It’s a great way to build some  base knowledge on any topic you are interested in.Finally,  I would e courage you to find your local real estate investment group.