Option 2: Purchase additional properties and build portfolio I know that there are some tax implications to no having the mortgage payment to consider.

Totally a viable option but keep in mind the documentation of the process and making sure that YOUR material participation does not exceed anyone else in the home - for example, your cleaners or maintenance people. 

I see value in both, but I'm unsure which is the better option.

Would this be a viable option?

There are DSCR loan options where you can cash out up to 80% if you and the property meet certain criteria: if you have a middle mortgage FICO score of 740 and above you can do a 80% cash out refinance if 1-4 units (so single family rental or 2-4 units).

There is another option to look at assumable loans here in AZ and see if you can get into a lower interest rate. 

I have a few options.

In fact, 99.9% of wholesalers could make a lot more by flipping burgers at Wendy's.A better option is to get a job in real estate.

They say they will sign my lease and also sent me an addendum to sign allowing them to sublet.There are a few reasons why i like this option for this property, but im wondering how to background check the company and the individual they are assigning to ensure ill be paid monthly as they claim. 

There are no perfect options.