It would be similar to option 2, but buying an option 1 type home. 

Then I go through an independent insurance brokerage for my rentals and have a master type policy that one property holds and five more properties piggy back off of which saves me thousands of dollars per year.

Buy BoxLocation: Greater Twin Cities metro area (preferably western suburbs)Investment strategy: BRRRRProperty type: Small single-family home (must have opportunity to add value)Purchase price: $200K-$250KRehab costs: $0K-50KFinancing: cash purchase, refinance after rehab and rentingROI (cash property before refinance): >5% cash-on-cash returnROI (refinanced property): >0% cash-on-cash return, with >70% of total investment costs pulled out of the dealManagement Plan: PMIn best regards,Ben

Nevertheless, your acquisition budget means different assets depending on where you buy and the type of asset you buy.

If this type of investment is so successful, why are so many people willing to discuss their strategies with strangers?  

What is the best loan type between a 15/15, 10/20, 10/25 loan?

Like @Bruce Woodruff said above, just look at all the listings in the area for similar type places to decide the rent rate. 

A couple of clarifications here, when you say retirement brokerage, what type of account is this exactly? 

What made you interested in investing in this type of deal?

Yes, it's not different than going from FHA to another other type of conventional mortgage.