If you're doing a traditional long-term SFH, then I think 20% down would be best as that PMI will impact your cash-flow.  

You don’t want any unpaid bills piling up forcing the house to be sold to pay off those bills.

Opt2 is forced "savings" upfront because you have to leave/put-in the equity now via what you have to put down (to me, a "down payment" is such a misnomer since there is no such payment. 

Try forcing that on a tenant and you’ll at least be crediting rent if not getting them a hotel room if it’s in the summer or the winter. 

With freezes on raising rent through the pandemic it has impacted our cash flow significantly, especially with the double whammy of some tenants not paying rent at all and doubling their utility bills. 

I really appreciate the support - I'm going to stick it out.There are some positives, I'm learning a ton AND I'm forced to push harder at my W-2 sales job for more income.

JK, I use capital chunks like that to buy small MF, force appreciation, and trade up into new projects (2-3 year timeline on each).

You may run into issues renting it and depending on where you live even be forced to remove it.

As a new investor it taught me to not be afraid to submit an offer I know is right for me, don't let the competition force me to the sideline, and most of all if the deal passes the analysis check don't wait to submit an offer. 

Material pricing and skilled labor shortages force contractors to be the bearer of bad news many times to investors working off of a 5 year old pricing matrix.