To replace that much income will require lots of work or you will have to hire a full time team that will eat into your margins and will require management.

Wolves trying to eat the sheep. 

As far a a dollar goes, you cant eat it, wear it, sleep on it, or send it to someone across the world within a few minutes for pennies. 

Put the profit towards a new Primary residence and ~$50k towards a rental property.2) Rent it out and eat the cash flow loss, hoping rents increase.

We can't have our cake and eat it too.

So when you go out to eat for a wedding anniversary, you go to McDonalds right?

With a small portfolio, it will eat away at all your cashflow.

Take notes from a few people who tell you how to bake a cake, go eat some cake and get your own ideas.  

I am eating it out of pocket, and going to try to push it back on FEMA and any association that can work with me on it. 

Also Since you plan to live there for 3-5 years, it’s easier to manage and maintain, giving you time to learn the ropes of real estate.That said, be mindful of high HOA fees, as they can eat into your margins and affect future cash flow.