I do not think options 1 and 2 are mutually exclusive, in fact I think you should do both. 

This strategy involves holding the properties for the long term and profiting when you sell them.Here are some additional factors to consider when choosing a real estate investment strategy:Risk tolerance: How comfortable are you with risk?

I had 3.5% rate, did a lot remodeling and heavy lifting, and decided to sell due to the 2/5 capital gains exclusion.

Be prepared for trial runs with several different candidates if you choose to hire a handyman to make sure they turn out to be qualified and dependable.

Choose properties needing minor upgrades to build equity.

When someone who is not an electrician wants to do electrical work and you choose that because it's cheaper, don't you already know the answer?

I have to evict using the landlord tenant route, but I don't know which reason to choose.

One of the board members was there and is looking to retire, We hit it off and he opened up his 30+ property portfolio to me to choose from.

Whoever you choose to coach you needs 4 things:1) Need to know what you want to know. 

But I also realize many people choose the direction of Appreciation first.In my hometown market (not Pittsburgh, but central NJ area), few small to mid size multi family properties could come close to cash flowing positively.