Because it is your credit on the line, you should designate the accountant/bookkeeper/servicer to collect rents and make payment to your mortgagee.

The roof is newer, as in within the last 5-10 years, and has vinyl siding on the outside, and no visible structural damage. the units are very clean and ready for tenants to move in.

We are holding $30,000 in escrow against any damages and have a hard 30 days deadline for him.Our exit strategy would be to put new appliances and clean up and put it right back on the market for $235-$240k.The seller found out about us through referral from another seller we had marketed to.You never know where your deal would come from. 

I am buying homes that wouldn't pass appraisal standard for the low credit/low down loans and cleaning them up and rehabbing for the first time home buyer with marginal credit etc..   

Thanks @Omar Khan,  those services would be avaliable from a local commercial real estate broker correct?  

Does someone have a script that could be provided for wholesaling services to a company like Patlive?

In saying that, depending on your level if knowledge, option 1 is probably a better one. because $3000 is not enough of a buffer to service the property if you need to repair things.

Work done prior to the property being put 'in service' is just added to your cost basis.   

(Don't get them confused with Waterstone Bank, they don't service FHA loans.)  

They are on the low end of structuring what you can and cant do, mainly wanting to keep a clean, nice neighborhood (all single family communities).