Any future equity if the neighborhood surges can be used to justify upgrades to maximize profits on future sales.

Maybe sit and wait for an offer that will yield full payoff and capital?

To maximize the sales price of this house, we could a) work with an agent or b) sell to a builder.

We put in an offer (which was accepted) for a property advertised as a legal 3-unit. 2nd floor: 2 bed, 1 bath1st floor: 1 bed, 1 bathGround floor: studio apartmentIncluding rent from the 3 units, and an FHA loan with 3.5% down, yields an NOI of 24,200 and monthly cashflow of ~$550.

It's never wise to chase yield. 

One by one is a secure way to go to flip houses but your using the money to operate on a grander scale your overall turnover costs timing and quantity will all leverage and maximize a return on a life changing scale.

I'll just throw this out:Not every deal that meets your terms has to involve maximally screwing over a widow or divorcee. 

Do a google search for top rental markets, it should yield a site with a heat map of the U.S.

SureLease to own is a good strategy for sellers don't have a lot of equity if you read Gary Keller's book SHIFT he talks about creative financing to help sellers that are having difficultyYou have to be willing as an agent to act as a principle business owner, and tell your broker know that you're doing deals as a principal versus acting as an agentYou can make 3% as a option release fee, buyer or seller paysI love saying to the homeseller of expired listing"I know you tried to sell traditionally with an agent and it did not work out for you, but what if I can get the house sold for you, and maximize your equity, so that you do not have to pay a commission?"

As a note buyer, I personally wouldn't be interested in a 7.5% yield.