I would suggest taking the route of option 2 or 3, so not only are you saving over 10k in rent per year but the residents help in paying down the debt.

Real estate is a slow game, but over time, it can help you build significant wealth.

They also benefit from strong schools, which can be a huge draw for long-term tenants.While you may not achieve high cash flow immediately in these areas, the property values and rents tend to appreciate steadily over time, aligning well with your goals.

Whether it makes to sell the rental or keep it depends on your answers to these questions. the property is producing around $855 after property management fee, I have the same tenant for almost 3 years That's a little over $10k/year in cash flow, which is very strong yield for the price.

I’m based out of Lehi, Utah, and have always been fascinated by the potential of real estate to create opportunities and build wealth.After spending time learning about the industry and what it takes to succeed, I’m ready to dive in and start making deals happen!

If you just want consistent distributions over the long-haul, you may want a more stable deal with a longer horizon, even though that may mean giving up the 20% return possibility.

But of course Like I said you pay somewhat of a premium over the cheapest hard money out there that reguires down payment  paying their points and fees UPFRONT making monthly payments paying for insurance..

Don't spend time looking for something that doesn't exist.

I'd talk to your broker on what it'll sell for after the fact and where the market is heading over the time you plan to own it. 

The other thing I have learned over time is that the clearer your vision is, the easier it is to get there, so CLEARLY defining the location, type of property, purchase price, renovation amount, etc. etc., will really make a big difference.