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

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.

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.  

Which option is the best route business-wise is a complex decision.

I've heard of "blanket mortgages" which I thought might be a better option for me so I could use the equity in both properties and only need to get one mortgage.