I have my current mortgage as a 25 year (5 year ARM) at 7.5%.

It'd take ~16 years to get the same cash out from the first scenario as the second (~10k).

I’m looking to break even after ~2 years.

My recommendation would be to choose potential markets - in several price points - that have strong rental demand and year-over-year rent increases and that also are in markets that are appreciating. 

I still read a ton of business and real estate books going on 5 years doing this.

At that point prices may drop but that could be over a year away yet.  

I have had room-to-go furniture in 3 of my Airbnb for the last year.

If it’s 4 units you’d always want the residential loan with the 30 year fixed rate, especially if you plan to live there.

We haven't stayed as guests for 2 years.

it was closed under LLC & had it for nearly two years