Your 3% rate likely helps you with cheap debt and without the need to chase high that normal rental rates.

That said, there are some things to consider....The reason the other people on this thread were talking about a lease is because of your debt to income ratio.

If you find some good deals you could use debt to acquire more doors to get you to your cash flow number faster (your option 2).

Since I’ve been syndicating real estate debt and a few equity deals for 25 years, I’ve made it my business to maintain a constant “overview” of the “product” being offered.  

In addition to down payment you need reserves which is 12 times or 24 multiplied by all you debt.

If you do you may run the risk of piercing the corporate veil of your LLCs making you personally liable for business debts. 

I think what you describe is pretty much standard performance for rental properties if your not paying cash and I am just assuming your putting max debt on them to try to get your return numbers into your criteria..

Just be cautious of DTI (debt-to-income) ratios when qualifying for additional loans if you’re relying on projected STR income—most lenders require at least 12 months of rental history.

Eliminate debt, establish a budget, and save.

I used a LOC to build a 12 site RV park in a small town, opened it up and 1.5 mnths later, I'm full occupancy and servicing the debt (some of it at 8.75%) & cash flowing.