OOS is a very viable approach for someone in your position with some excess capital that you want to put to work for you.

how would one approach this type of question?  

Optional if tenant stays or leaveswant to purchase as 1st time home buyer and eventually remodel to live as primary resident. what is best approach to negotiate?

I haven't approached any banks yet.

Of course if you could find a portfolio lender who would lend using an income approach that could work.

Then approach the seller directly and ask if they would be ok with a full price offer as long as they cary back the note for a 5 year period.

The process is to Learn it, Systematize it, and THEN to Outsource it. 

That sounds like a great approach.

We have taken a proactive approach and are doing meetings via Zoom, we also have a matterport scanner so we will be able to scan listings and homes that a buyer may want to purchase if they are afraid to tour it in person.

Personally I’ve done both and I’ve also done the multi family approach (a triplex) and the SFH approach.