Personally, I would let the brother know what you plan to do (raise rent to FMV at end of lease), find out if he intends to stay at full market rate, then screen appropriately if he wants to stay (the current lease doesn't get changed, he passes the normal background check, and pays full rent on the new lease he signs after the old one ends--or goes month-to-month).

There were no other liens and the original owner passed away so we believe the condo to be empty.

It's a hard pass for me.  

But is that "option agreement" an executory, real property purchase contract even if will not pass to the buyer until the last payment is made? 

If you wait for that you will pass up a lot of chances while prices continue to keep going up.

Presumably, the big front room downstairs would be the master bedroom; however, you have to pass through a living room and kitchen to get to the house's only bathroom.

The home has to be in move-in ready condition to pass an FHA Appraiser's inspection.

But for hunters passing through, cabins can be good seasonally.

It passed no problem and the appraisal was done twice as fast as a normal appraisal in our market.Write a letter to the sellers with your offers too and sooner or later you will find someone who wants to sell to a veteran even if it means $5-10k less than another offer.Best of luck and thank you for your service!

One month's rent is not likely to pass that test.