Except I don't know the tax consequences of scenario#3.I know the returns and appreciation are not guaranteed. 

Finding quality trades people today has become a challenge . . . the good ones are booked and the bad ones are plentiful. 

I care about total return and have barely a concern about the source of the return but try to minimize the return from cash flow due to the tax consequences.  

Normally, the cap on seller concessions is 6% of the sale price, but that’s not the case for commercial loans.Here are the trade-offs:5-year stepped prepayment: A typical residential loan at this price point isn’t allowed in the state, but with commercial, those rules are different.20-year amortization: This means higher payments, but it forced me to ensure my deal works under strict terms.Interest rate: It came in at 7.9%, not stellar but still good.Overall, I’m pretty proud of this deal.

@Matt Mainini… last couple years have been good for the trades in SA.

The unfortunate situation that many of my clients have faced prior to coming to me is that their smaller property manager was bought out by a larger corporation, and consequently their services were diminished. 

While he trades CRE is almost like a day trader, he keeps buying and selling property very fast for an asset that's not in his expertise/level.

You're trading out a 4/2 and 45 minutes for a 3/1 and 1.5 hours? 

It appears that the advice you are seeking should be coming from, in part, a real estate attorney who can navigate the issues you are dealing with (especially in light of the consequences across the ocean).

The former is an investor, the latter is someone trading.