Other than that, that would be a very good solution.Given this "new" information, it looks like between both of you, someone is trying to trick the bank into lending out a lot higher percentage LTV than they would normally? 

Title search and title insurance like normal.

Would it be better to explore the rent to own option or just continue as a normal rental property?

Normally not a big deal, but they had just moved in and had boxes in the garage.

What is the normal monthly rate ?

If it's traditional lenders/banks (meaning normal downpayment, W2 income to show, etc) then anyone from the local credit union to quicken loans can be a good option.  

Also the title company in Texas they designated charged me about double what I normally pay for escrow fee and gave much worse service than what I expect from my normal title companies.  

Normally that comes from lazy landlording.

How about before all of that, just talk to them first and have a normal conversation, get a feel for what they do and how they are treating your property; and then make a decision.

Often times manufactures discontinue certain lines and look to liquidate products that normally retail for $4+ per foot and can be found for under $2.