It was known before closing due to the tenant mentioning it, the same time she mentioned the window was broken into the seller dropped the price to compensate.

This is an area as you said and others have said that is dropping in price.

I am not sure if this is the right place or not but I wanted some input into any obvious issues with my lease option offers to the tenant buyer that earns plenty of income but doesn't have the cash right now and wants to improve credit before purchasing but would like to lock in the price as our market is still struggling with inventory. 

Find an Insurance broker to shop the market and make sure you are in the right spot for an appropriate price! 

I live in Phx,az and recently friend of mine sold his bank (ex bank of america) literally as is and profiteed $300k  , he purchased it right out cash last year (I think) and it was in real bad shape in a shady part of town,  before him taking possession of the bank  homeless people where living inside it an using the bathroom anywhere in the building, he put maybe less than $5k in just cleaning it up and just a couple of days sold it.Basically the idea is to find super cheap homes in ****** conditions but the price is so cheap that you could still make profit by selling as is, investing as little as possible..

Single families, multi-families, condos, townhomes, etc.What price point have I been looking in for the type of homes that I want to live in?

Median prices are low to mid $400's, but in Lake Nona you are pushing $500.

Credit score- the higher the best. 760+ generally gets best pricing for investment property loans with most lenders780+ generally gets best pricing for investment property loans with most lenders.

Here are a few: I just saw a LinkedIn post with a sponsor talking about how they are underwriting using cap rate compression, meaning that in 5 years the sales price cap rate will be 50 bps lower than the purchase cap rate. 

Of course it depends on the market/price, and of course the more you put down the more cash flow you will get.