Can't say for sure how much cheaper unless I got inside but it's almost impossible to err on the low side.A word of caution.  

Getting an appraiser to change 2 words on an appraisal, especially with a VA appraiser, can easily be 3-5 business days or more.

The word will get out without your help.

In other words, couldn't I follow the steps you provided without the purchase and lease option to buy?

(I can PM you with details about what primary residence means under the wording of the ordinance.)Will this be your primary residence?

Try door knocking on old, rundown homes to see if they may be interested in selling.Direct mailers are another route and word of mouth is also a great way to spread the word.Try posting on FB buy/sell groups telling them who you are and what you are trying to accomplish.Best of luck!

Overview: Any guidance/words of wisdom for a new guy?

I am in your neighborhood and happy to answer questions as long as most of the words are one-syllable. 

In other words, if you exceed a certain rent then people will rather move into a nicer part of town, even if that means that there they would only get a smaller/older home for that amount.People are very savy shoppers and even though you will be able to ask for premium rent for a premium property, if you are $50 over the acceptable top ceiling you will simply not get a lot of interest.

In other words, even if a property is freshly remodeled does NOT make you immune to all those expenses ... if you hold onto the property long enough (as you well should as a buy and hold investor), then sooner or later those items are going to need to be replaced and are going to cost money to replace ... if that money does not come from CapEx reserves taken out over time as a CapEx expense in the budget, then where else would the money come from?