private money down payment vs PMI vs my own down payment

[Raj Chavda]

this is a newbie question but here is my background...

I have been a silent partner in flips for the last year on two properties which will be getting the principal and profit back soon as they are under contract or have sold already.   my brother and sister both own an extra home that they couldn't sell that they started to rent it out......So I want to dive further into RE investing

I am looking to get into buying a home (SF or Townhome) to rent out that will be 200k negotiated price.   I have a three options to finance this deal from my perspective

Option 1 - Take the principal/profit from the flips that is coming back to me and use that as a down payment (which will cover enough to avoid the PMI) for a traditional fixed rate loan.  Use the rent money to cover PITI + vacancy + maintenance.  My net profit would be equity + monthly "spendable" cash to spend or use/save towards another home.   Pros:  Equity is all mine from day one, no PMI, no investors to please.  Cons:  I have to use my own money for the down payment

Option 2 - Find a investor to be a silent partner (I have a few in mind that have shown interest in doing so) where they would cover the down payment for the loan and all profit after expenses would flow back to them for their principal plus an ROI of 5-7%, once the principal and the ROI is paid for thru the profit I would have 100% equity in the home.   Their equity would be only whatever the outstanding balance of me funneling the profit back to them until paid off (just in case I sell the house before paying them back).  Reason being all profits would flow back to them +5-7% interest is to entice them to invest and get their money back to them quickly so I get the equity quicker.   Use the rent money to cover PITI + vacancy + maintenance + investor principal. My net profit would be only equity till the investors are paid off. Pros: don't have to use my own money and can use the flip money to get another home. Cons: Have to pay a 5-7% interest on the down payment till principal and agreed interest is paid off.

Option 3 - Get a loan with a PMI, this way  I don't use my money from the flips for this house and can keep putting that money back into flips or another home like Option 1.  Use the rent money to cover PITI + vacancy + maintenance + PMI. My Net Profit would be equity + monthly "spendable" cash to spend or use/save towards another home. Pros: don't have to use my own money or investor money at a higher interest. Cons: have to pay a PMI for X amounts of months.

My credit is excellent so I don't have any concerns of not getting a loan.   I am saving quite a bit from my corporate job now that i can cover the PITI if when I have a vacancy.   Thinking about getting a management company in the interim so I don't have to deal with the week to week aspects of being a landlord until I get good enough that I can quite my job down the line.  

Are any of these options just a pipe dream and I am looking at this the wrong way?   Thoughts/criticism welcomed.    If I left out a variable in my thought let me know and I can tell you what it is.  My view point is long term equity is higher priority vs monthly income now since i am saving quite a bit already from my paycheck but would like both if I can manage it at the same time.