As far as the legality of it, that is something you'll need to learn and know in detail for your market.

After initially focusing on finding a 2-4 unit property, I recently successfully pivoted to a rent by room strategy that has been working well so far. As

As an investor, you always want to make your money stretch as far as it can, and multiply as much as possible.

With the way you have presented the options, it almost appears you are trying to "sell yourself" on opt1 since your "out of pocket" is so much lower and you feel you can refi out of the arm later. 

Thee all seem like things people expect to have access to.As far as the noise form gaming I would remind them others have a right to peaceful and quiet enjoyment of their place as well.

The velocity of trading is so high that there is no way of capitalizing on information arbitrage.

I'm expecting a continuation of the current wave of inflation, so locking in low rates is an advantage as far as I'm concerned.

Don't fall into the trap of giving up on your plan just because the market is so hot.

We've had trouble getting people because everyone is so busy right now.

So it looks like we need to be pre-Approved for around 350k in the Grand Rapids, MI market (well at least as far as Multifamily goes!)