If things don't work out you simply terminate your leasehold interests, but if things do work well and you enjoy working with the current owner you put yourself in an ideal position to put very favorable seller-financing in place down the road since you are the one that has been managing the building, removing his tenant headaches, and already sending him a check each month.

Assuming everyone is being friendly and you can do a walkthrough and the home is in the same condition meaning nothing to deduct from the exsisting deposit you can simply do as you suggested, refund the exsisting and collect new deposit and start over with a fresh lease. 

It could be they have something else going on (eg illness) or simply haven't gotten around to it yet.

So you are best to simply look for something that you can improve and turn into more units under the BRRR. 

If you make an extra profit some months do you market extra with that or simply treat your self?

My rental property PM shared the code with a 3rd party local vendor that I am going to hire.I thought someone from my PM company will open door for the contractor but they simply shared the code.

They simply didn't do any screening no matter what they told you they did.

No need to meet Start eviction tomorrow via real estate attorney In the future with an inherited tenant simply send a registered letter informing the new rent amount.  

You could simply save up for the next down payment, you could partner with others, you could try to seller finance, there are a number of options.

Then on top of that it will simply come down to where your money goes the furthest.