In my opinion Option 1 could be a bit risky in today's environment as we are not sure if prices have hit the bottom yet, there are positive signs in the CoS market that point to price appreciation in the future, but there is a good chance the interest rates are not coming down for a while, which will have a negative impact on home values. 

Once they are knee-deep in furnishing their property or after posting their property on Airbnb for a few days/week they get hit with a violation notice from their city.  

I'm not sure if prices have hit their lowest point yet, but they have come down a lot from when they were very high last year.Thanks for the help in advance.

If your plan is to rent it out part time, you might not hit that threshold.

In reality, as soon as your cashflow hits your bank account, it's either reinvested in a similar asset, swept to an interest bearing account (high yield savings account/CD), or reinvested in some other form.

@Matt Ternullo the Vineyard and Nantucket are on the hit list for future properties.

Even if you get one hit on that and charge 10% your making $2000.  "(4) they imply competition is limited; competition is actually fierce, except for the deals on which there is no profit."

Not a big hit for them and you can explain.

., Reid International hit an unprecedented 118.4°F, breaking the all-time high since records began in the 1930s.

As you mention I have been in 1000s of homes and a rare day when I hit a street or neighborhood I've never been in.