While I can't provide specific advice on Michigan leases, I can offer insights on lease options.

I expect to offer to keep the rental rate the same based on the market, but know when I was a renter there was always an option to go month-to-month for a higher price. 

One thing I wish I had asked before I submitted offers on out of state properties was have an experienced investor or unbiased party (not anyone on the agent's team) do a very detailed video tour of the property and pay them for their time.

Marcus,If you are a Military member you should use a VA construction loan which offers 100% financing as well as a VA renovation loan which also offers 100% financing.

Best plan is to offer the existing seller/lender 7% rate for one year to give you the wiggle room time needed to get this done.

If anyone knows an agent that offers a good policy for a property being rented to a group home in Arizona, please let me know.

Do you offer buy downs?

Have the tenant sign the docs and offer them 72 hours to make any additions to your move in inspection report. 

New home communities have lower cap ex due to their age/warranty and that may be what you are most comfortable with.

For example, with a strong DSCR and high credit your leverage can be greatly extended and your interest rate lowered to a point where it makes your offer price ability bump lift and yet still be profitable.