So, I'm trying to decide between the two options below:Option 1: Buy a couple of properties and split the money from the 1031 exchange for the down payments.

it combines the advantages of owner occupancy, such as a lower down payment loan, with investing.

Terms:$160,000 purchase price10% down payment3% interestBalloon payment in 5 yearsMy plan was to just make the payments on the land for the next 3-4 years, ride the appreciation wave and sell the land in the same condition.

He wants to rent it because of  that estimate even though we would be losing money every month because our mortgage payment is $2700.

I see some investors in the central Florida area happy with break-even since they are looking for appreciation and on the other side, I also see investors looking for PI mortgage payment to be 50% of market rent so they can cash flow right away.

Section 8 is great, as it is guaranteed rent payments each month.

If you or your brother can house hack, that can also offer you great low down payment programs and help you build your wealth even faster.  

I sold it at 7.5 percent over the course of 30 years and if the party defaults i immediately retake possession pocket the hundred thousand and the months of 7,000 payments and now I have an asset that is probably worth significantly more then when I sold it.

Mortgage payments, real estate taxes, utilities, property management fees, landlord insurance, and upkeep and repairs are examples of fixed expenses.

I'm planning to do a renovation on a 3-4 unit property using a 203k loan which I hear some contractors don't prefer because payment from the bank can be delayed.