Basically, if the price you're being quoted gets you some built-in equity in a nice A area, then go for it.

When I exercise option to sell, does bank take into consideration equity in the property (option price/market value), or would I still need to put down 20% in cash?

Ideally the rent covers the mortgage so you're gaining equity and potentially living for free.

Then I saw a review claiming the positive reviews were all smoke and mirrors and that they basically make people go around placing "We buy ugly houses" signs everywhere and it's not very legit Does anybody have any experience with this company?

I was in a similar position buying a property in Phoenix from Vancouver.  

The home you live in is NOT an investment...it is however your biggest cost.This is a simple math problem.If you put money in a property and leave it there, it is a negative number = Your cashIf you get money out of a project, it is a positive number = your profit or cash flowIf someone else puts the money in a project, it doesn't count as positive or negative = leveraged funds...unless, you have to pay for those funds = loan interest.However, if someone else pays for those "interest costs", they don't count as positive or negative = Cash flowJust apply all the cash moving in and out of your deal(s) to one of the above definitions, add (or subtract) all the numbers as indicated above, and you will see either a total that is positive...or negative.If it's positive, you are making money.  

With the low interest rates we have had recently I have tried with several lenders to do a streamline refi and or try to access some if any equity from the property.

Hi Aaron,I use the url below to find properties in my area going through the foreclosure process and if their is equity in the property I notify owner I am interested in purchasing to help them out. 

A good resale value note will be well seasoned (over a year of on time payments), interest rate of 7-9%+, balloon is a plus, in short foreclosure or highly desirable state, good equity in the house, and created by a licensed Residential Mortgage Loan Originator.If note is poorly created, mortgagor can walk away with a free house that mortgagee cannot even foreclose on due to possible broken laws or poor paperwork.

Neither a private lender nor an owner is going to be willing to have a 3rd position mtg, and unlikely a private lender will take a 2nd.