It's more tedious and time consuming but it substantially increases the odds of the tenant buyer actually closing on the option don't you think?

There are several approaches to doing lease options, and consequently, many variables... so it would be prudent to do so to 'maximize' the exposure, pre- screen the largest number of applicants, increase the likelihood of 'closure' (selling the property) with the tenant buyer(s) and structuring the deal, to optimize your ROI.

As @Jason DiClemente suggested you would need a higher rent rate to accommodate the increased mortgage payment. 

Let's break down what the BRRRR method is.B = BuyR = RenovateR= RentR = RefinanceR= RepeatThis method only works when you are able increase the value.

There are some downsides to a HELOC such as interest rate increases which is likely to happen. 

I'm thinking of increasing my offer a little just to see if they will counter.

Also, how much are others increasing the rent yearly?

I would obviously look to first get those apartments rented then increase rent to other apartments as the area grows.

These properties are most likely going to be occupied by a home owner, so that is what you must focus on attracting. side note, i recently discovered Facebook marketplace for real estate!!

@Cameron Oades Hi Cameron - there are a few markets in Quebec and Ontario (not the GTA) that I've been working in that still have great cash flow and moderate but steady increases in property value.I go for communities that show a 4-6% increase in value, a less than 10% overall vacancy rate (I aim for 5) and constant increases in population.I am currently working on 5 deals that are quite promising.