He gave me the companies that he would typically use. 

Having a PMP and Lean Six Sigma Black Belt certification have helped me create a process-oriented approach to executing strategy and analyzing data to prioritize initiatives as well as course correct well before issues become catastrophic.

Not sure whether that's inline with the typical market.

I’ve been going back and forth on this lately and am leaning towards gutting the rentals and updating them.

I have complied with their inspection process to get tenants in, one required me to fix a neighbors fence that wasn't on our property but was leaning into our property just to give an example of what they can come up with.   

Of course, the typical things to look at are the crime, schools, affordability etc.Happy to answer any questions and also make my self available for your July house hunt.

Because it's the biggest multi unit you can buy with typical owner occupied FHA-type financing. 

I'm not a CPA so I won't delve into any tax implications for your portfolio regarding seller financing.As far as what terms are typical for my area, I am in Ohio, where you can buy houses cheap.

Being able to make more money from the property and financial justification is typically not considered a hardship.Could you put the property under contract contingent on going to ZBA and getting the other units approved?

This is the only scenario that clearly benefits the original owner but the benefit is typically only some high rent amount.In summary, the downside for the current owner is so much greater (loosing out to huge appreciation) and more likely to happen (historically the appreciation has been outstanding) than the upside (that the tenant does not exercise the option and the owner has been able to collect higher rent than a traditional rental).I did know a couple of tenants in San Diego that had a lease options.