Congrats - are you putting zero debt on the property? 

My debt on this home will show, but so will the rental income from it.

For me I have 3 main goals I am shooting for:1) Pay back the debt I acquired purchasing rentals this year. 

You can refinance it into a conventional loan and that helps avoid the higher down payment.FHA also offers more wiggle room when it comes to DTI debt to income ratios and reserves requirements. 

More importantly, get the high interest rate debt paid off first.

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

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.  

The key is to understand the capital stack, who is in line in front of you and what are their terms.The people who are getting burned may have known there was debt in front of them, but did they know it was short term or variable - did they know all the details to make a good judgment on the investment.If a property had 20 year fixed debt at 70% would you take that over 3 year debt on a variable rate at 50%? 

And after observing @Benjamin Aaker in action I love how he manages his debt.