I’m curious what rates look like these days for a commercial apartment building around 1.5M.If any lenders could chime in or investors who have seen recent rates please share!!

Assume an FHA loan to non-occupy and use for rental real estate.... 

I also suspect the vast majority of lenders will take exception to your mom being the 1st position lien (look up strategic default).

Option 4: 20% down on 2 to 3 properties Also open to hear other ideas, I'm self employed so getting a lender can be a bit more difficult.

So before dismissing your options, you may want to consult an investor friendly Lender who is an out of the box thinker.

One option to reach (or exceed) your goal of passive $10,000/month income is investing in real estate as a private money lender.

@Carl Rowles as a public school teacher you may have a 403b which also sometimes offers loans!

Do you have a list of recommended lenders?

It was a big project in terms of the amount of work it needed, I just ran out of time with my lender going through the garbage with the contractor, finding a new one, and finishing taking the longest. other than that I would've let it sit on the market to get closer to what I actually wanted for the property.

Based on what you're telling me, I'd also advise you to begin the process of evicting/non-renewing the lease.