Originally posted by @Matthew Paul:Throw out enough offers and  one will stick In this case Matthew I doubt that these are successful investors, it seems that their business moidel is just based on pure luck i.e. not a real business.

When we know the investor who is using the funds are purely for rental purposes; these options are available. 

We invest in both personal properties turned rentals when we are transferred and pure rentals.

This is my first property purchased purely as an investment. 

Is this purely cosmetic or is there value added to repair the issue for a rental property? 

I agree with Account Closed - it really depends whether or not this is going to be a pure investment or a "house-hack"

While this is a very personal decision with a lot of additional factors to consider, from a purely financial point of view, Option 2 sounds far better to me. 

I even looked at 6 months of pure vacancies..where would that leave me.

From a purely cash flow perspective, paying off your primary makes sense, but it's not that simple.I would look at your mortgage's interest rate. 

But I agree with you , when you hit a gentrifying neighborhood, you will make multiples of what someone trying to play a pure class /D neighborhood for 2% will make.