I might not even take this route but it is tempting because I am newer in this journey and I could use the cash up front to help push my real estate career forward.

Depends on your goal, it is straight forward.

IMO if you chose #1 now you can always choose options #2 or #4 six months(maybe a year) down the road, pull all your 60K back out plus what ever appreciation you have(if any) and move forward. to me in option #3 you said paying interest bothers you and option 1 solves that problem, gives you practice with a new tenant so if they don't pay or u have problems you don't have 2 bills( your old mortgage and your new mortgage) to manage along with the stress(of kicking out your friend and finding a new tenant) just the one mortgage that your fiance already has within his budget(because your 60K didnt' factor into bank financing so you found a home to move to that was within his budget alone(even more safety net) or at least lower mortgage payment and house than if you had 60K to use to buy-down another home. but i digress....Option #1 is less stress , less interest payments,and less of your money with 2 options left over at a later date. like joe said your 60K is safely locked away in the home(minus depreciation) which you can always pull out later on when you are more risk-prove.Still your choice but that my point of view.Good luck!

I'm looking forward to connecting with like minded investors here and learning from everyone.

I'm really looking forward to this life changing experience and wishing you all the very best on your/our REI journey.Kindest Regards,Jonita (Jae)

It's a hard pill to swallow, but I think as long as I'm not sinking money into a mortgage every month, I'll feel okay moving forward with hacking.  

I definitely need to strengthen my networking skills :)I look forward to learning more and connecting with everyone! 

Look forward to hearing from you,Thanks,Alex Hake

The cliche "7 streams of income" comes to mind.I look forward to the day when I have so much money that I can just pay cash for everything.

 @Michael Guzik just curious did you move forward with this ?