I'd sell #1, even if you have to take a loss on your equity.The market does go up over time, but most markets seem to be stagnant right now, so when does that change?   

You have zero control over the stock market, whereas when you do private lending, you have significantly higher control and contractually guaranteed return on your money.

Additionally, their marketing was very compelling.

And then you got the vacation rental market.

Way to many investors were buying properties for more then they were worth with hopes of collecting MUCH MORE than market rent.

They will know market data and trends better, have reliable comps to base their recommendations on, and could even be a great deal flow with current portfolio properties selling.The completely remote, centralized PM function is one of the reasons why you see the homes owned by PE firms sit on the market so long.

Low or no down, seller financing and low or no interest with a balloon payment later is the holy grail (location, building condition, market also matter but it sounds like you have all that).

My local market is cost prohibitive to invest in and the thought of assembling a "team" of unknowns in another market was scary. 

I would select one marketing method and become an expert at it.

I'm not sure what market you are in but I'm knowledgeable on Columbus Ohio if you ever want to talk about build to rent. it's not purchasing new builds at full market price, it's building it 25% below market yourself