Looking for a bit of insight as to my options on financing. 

For this reason, I highly recommend the 2 BR option over the 1 BR.  

I know this is most individuals’ issue and understand that there are other creative financing options, but I find myself stuck in an infinite loop of needing funds to invest so that I can raise more funds to invest.

Are there no other options?

I am wondering what my options are to turn these properties around.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

If the rent is deposited into your account then you have accepted payment.I use apartments.com and zillow to handle payments - they allow you to block payments.This won't help you this time but in the future your lease should specify how they are allowed to pay rent, specify payment options that give you control over the payment.

The option period is for you to negotiate items that are safety issues.

The lot is 3x the size of the other option and the home has very high potential for value add.

Hey Madina,DSCR is a great option, especially if you want to purchase the property under an LLC.