It depreciates and produces no income.If you have available equity, as you do, to tap into to generate a rate of return from a portfolio of income producing real estate then that is often a great strategy.

(result - producing - activities) 

How about option 3; your absolutely wrong on both knowledge & experience of REI AND on the arrogance of "armchair quarterbacking" that you know better than a top producing investor and educator of REI because.... well simply because you "feel" that way...... 

I have been an actor and producer for the last 12 years and it is a tough nut to crack to support a family.

If that doesn't produce results, go to your next step.It's just business.

I'm 54 and my goals are to have 5 or more income producing properties in the next 6 years that will supplement me in retirement in the next 8 to 10 years.

I will add that if you are looking at multi-family properties, you need to get your lead funnel producing potential deals.

I'd give them an ultimatum to start producing or explore other avenues to get it leased to decent tenants.

I'm not comfortable with entering into a debt service homes that are not producing income, and for which I have effectively become an entity that is subsidizing someone's housing needs (this is the learning curve for me). 2.

You still have a solid asset underpinning the invested funds, and several means of producing income.