We'd like to use most of our own finances/savings, but we want to have alternative/backups already planned just incase.Anybody have any ideas, please share.

The income from the machines covers to the cost of the water, natural gas, electricity and machine maintenance for the shared laundry, on a very tight margin.We thought about separately metering the 8 apartments for water and installing W/D hookups or providing W/D in each to make the units more marketable, but it wasn't cost effective for us to do so. 

I guess this is the nature of the promotion process.

Alternatively, you could take the deal your FIL is providing but a couple of things to consider: - at that point your relationship will change to lender & borrower & - your income should ideally also be increasing over the years (this is to counter your point about feeling like your timeline is pushed back to purchase your own forever home). 

I would absolutely replace the cabs, with 42" uppers (replacing that inaccessible area above the doors), a 24" deep cab over the reefer with a return or narrow broom closet on the left.Here's an idea I've used for an inexpensive but attractive alternative to granite for your price level: Have a local shop fab up black plastic lam tops with square front edges, and NO 4" splash.

Alternatively, I could lease option the property and don't know if there's a strategic advantage to either, other than if I'm refinancing after a subject to, I can do a cash out refi but if I'm taking title after a lease option, then I'd have to put the 20% down.So, a question - what are the closing costs associated with a subject to and what type of company offers the servicing of the mortgage so both the seller and I are protected in the transfer and repayment of the loan.Does a property that I acquire subject to the seller's mortgage show up to my lenders when I'm looking to refi my other properties?

Just the nature of the beast.That vast majority of properties will not have positive cash flow as rentals. 

the market is still very hot right now so when you make an offer you have to have everything ready to go.Lastly,  you might want to look at an alternate market.  

Sadly lenders are in the driver's seat if you only have a week to close.You could also attempt to get an extension to close to find an alternate product. 6% is not crazy, but it does not feel that competitive. 

Might be a good alternative for you, instead of signing up for 30 years of higher interest first payments day 1.