Sleeping in the duplex, nice , like a 'free' Airbnb. 

*Number 2 seems like it will possibly bring in more cashflow (once all the numbers have been sufficiently crunched), but again making huge amounts of cash isn't my immediate goal.

I agree with him that cash-flow alone is not sufficient.

-I constructed my team to consist of the cream of the crop Property Management Team in Dallas, a partner that owns and operates 200M in Real Estate, and I moved to the city that I invest so that I can submerge myself in the market... super check.I don't think that the credibility and experience I've amassed is anything special, but I do think that it sufficient enough to entice warm traffic for a conversation about investing with us..By warm traffic I mean family and friends who have consistently asked that I let them know when I get a deal that they'd be able to participate in (and my goodness what a deal this is). 

My parents were always complaining about not having a place to sleep when they come visit so they started sending my "tiny house" listings and cabin plans.

I would buy a duplex, rent out one side and then rent out all the bedrooms on your own side and sleep on the couch!

If these numbers are in the ballpark, you have sufficient cash to buy 4 more similar properties, and increase your annual net income to ~$80K (that offers a lot more breathing room).Since you purchased your properties 2-3 years ago, I'm assuming you have very LOW rates on your notes; and therefore, I would not be in a rush to pay down these loans.

People will be willing to accept significantly longer commutes, because they can sleep, watch TV or work during the commute.

If it is to save a few bucks, let me tell you I would sleep better at night knowing that there is nothing coming at me from something someone else did or didn't do.

Recording the option should sufficiently cloud title, which protects their interest against you going rogue and selling the property after pocketing their payment.