With regard to your third option, I don't think that is a terrible idea if paying cheap rent.

I have the cash and I have the ability to perform any type of construction whether it be new construction or quick flips, but now I am struggling with finding the GOOD DEALS.

This answer typically stems from a view point of how good of a deal did you purchase, but what I am looking more for is what do you think is the most hands off, but best performing assets in your real estate portfolio.The apartment units I do have perform well, but I would consider them very high on the maintenance list and constant interaction with renters.  

Check the actual operation performance of the property like:It's already tenants ooccupied?

Buckle down and ride the wave of the property is not performing as desired.

I am not too happy with it but heck, it's a rental.Now, I have another one in another property that cracked...and a third one that chipped.So I am looking for ideas what I should do with these. 

He owns free and clear, just last year performed major rehab and updated the house.

We have a 6 unit and they looked at the performance of that property for financing as well as our personal finances.  

So far you've witnessed what have essentially been two full-scale proof-of-excess moisture experiments, and are very possibly headed for a third.  

Do not be attached to the outcome.I have a VA call finance companies within a 100 mile radius of where I live and ask if they have non-performing paper.