Definitely have found some long shot deals, but looking for more conservative solid properties to enhance ability for expanding.

To enhance my knowledge 

I figured I could get the house on terms and make a profit from the option fee and possibly monthly cash flow, then money from the sale at the end of the option of the tenant chose to exercise the option to buy.

Allow the property to go into foreclosure and then once the property gets purchased back by the lender and then sold to a 3rd party exercise the TOPA (Tenant Opportunity to Purchase Act) rights with his current lease to block anyone else from purchasing. 

The 3rd option is to do a lease option on it to save myself on taxes when option hopefully exercised in a year.  

Start running houses through Bigger Pockets Calculator and exercise your mind to be able to look at a home in your area, Know what it is worth and what it will rent for.

If that is the case that would be a good option to exercise, or you can pay off the second like it was person debt and keep the house.

FHA Consultant not necessary for a streamline, in-fact I would advise not expending any money on this as this will not enhance or have any bearing on your streamline loan.

I guess the only real conclusion of this exercise is do your numbers in your market, figure out what your goal is going to be and what it will take to get there.

If your buyer decides to exercise the option and then your seller doesn't go through with it, you're probably in for at least one and potentially two very costly court cases.