The normal conventional purchase and Cash Flow analysis does.I always try to purchase the property at the lowest price I can.  

@Joan Brown Ok, that sounds normal. 

Is this just saying if normal improvements were made the total is what it "could" sell for?

Other than that, that would be a very good solution.Given this "new" information, it looks like between both of you, someone is trying to trick the bank into lending out a lot higher percentage LTV than they would normally? 

Title search and title insurance like normal.

Would it be better to explore the rent to own option or just continue as a normal rental property?

Normally not a big deal, but they had just moved in and had boxes in the garage.

What is the normal monthly rate ?

If it's traditional lenders/banks (meaning normal downpayment, W2 income to show, etc) then anyone from the local credit union to quicken loans can be a good option.  

Also the title company in Texas they designated charged me about double what I normally pay for escrow fee and gave much worse service than what I expect from my normal title companies.