Before making any decisions, I recommend exploring neighborhoods in person, talking to locals, and doing thorough research to determine which area aligns best with your preferences and lifestyle.

What options do I have?

You could give them the option to re-up the lease with the $50 increase and lock the rate in for a year or go month-to-month at market value which would be a $200 increase.

But tax purposes, just getting a mortgage on your primary is probably still going to be the best option. 

However, this would increase my costs by about $4,000 a month (about 3K would be spent on skip tracing).I'm also exploring the idea of wholesaling in other states instead of in Northern Virginia and south part of Maryland.

If you do, you could give them an option for a month to month lease if they use you to purchase their new home.If that is not an option, I would stick to the lease end date of June 30th.

If I do go the property management route - can i get a limited service option (say in which I find the tenant, collect rent, handle most maitnenance issues) and they primarily are liasoning with my vendors during US business hours and handle any urgent maintenance issues?

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.