Option 3: Pay large down-payment on modest rent ready house. 

The market was much more active at the time though than it is now, so it could be easier now.

When you say as long as its not directly in flight path, meaning - when plane flies over the house?

As for the decision, it's really tough for any of us to say without knowing your goals, your situation and the numbers on this particular house.

Which strategy below would you do in the Austin market? 

We have a very unique market.

Over the years the only place I have lost money is the stock market.

Note at “standard” MLS market rent to price ratio, the property tax alone is ~20%.

Start by analyzing cash flow and market demand for each property to decide which one to rent out.

A great place to start is https://www.biggerpockets.com/meet which you can use to find like-minded people in your area and every other market across the nation that you may consider.You'll find some helpful tips at https://www.biggerpockets.com/starthere.For tips on how to get the most out of BiggerPockets, check out: https://www.biggerpockets.com/rei/biggerpockets-com-tutorial/The BiggerPockets Keyword Alert System is an awesome tool: https://www.biggerpockets.com/renewsblog/2012/12/1...See you on future threads!