My biggest aim is to ensure that my long-term success aligns with whoever I invest with's long-term success instead of making their money on the upfront sale and leaving me on my own. 

In one of my markets assessments are performed every 3 years, and the cost of 3rd party appeals will cost 30% of 1 year savings. 

Not many people are excited to see long-time solid neighbors leave and have them replaced by a short-term rental. 

2) The minimum hours required are 750 hrs, but if running a short term rental, 100 hrs is supposed to be adequate, is that still true ?

But here’s what separates the long term successful investors from the wanna bes, the hopefuls, and the people attending every seminar and buying every mentorship and never establishing a successful track record1- the ability to IDENTIFY a deal - most deals are not  advertised at a great price - negotiation is needed.

Option A would allow me to keep it as a long term rental .

High performers everywhere swear by it.

Even at $2200 I don't expect to get a positive cash flow for the first year, but that's okay as long as I rent it out and learn from my mistakes for my next investments.

Honestly with an interest rate like that you could even not pay off your primary and put any excess capital in a high yields savings account and be financially further in the long term.  

For long-term growth, consider newer single-family homes in high-appreciation suburbs or well-located small multi-family properties.