I have a metal roof on every structure on our estate (lol) That includes our home, separate garage, well house, large workshop, etc.

Option 1 isn’t even capital gains tax, is full bore regular tax.

I looked into Pace Morby's structure and these guy's structure and I think I liked this one more.

Unfortunately, like most things, if your first foray into anything new goes poorly, you are likely to label everything about that thing as bad.But back to your REIT comments: while I do acknowledge both the strengths (generally more robust companies, highly liquid, lower risk investments and overall structure), there are some trade-offs.  

The organizer of the LLC carries the risk.

Keep money on hand.But, if you are well funded, know what you are doing, stick to the law, are proactive, are organized and honest and don't promise what you can't perform and don't "rent back" to the seller for any reason at all and don't borrow from or involve people who can't afford to lose their investment with you and don't put 3rd and 4th liens (borrowed money) on properties and don't buy from "vulnerable people", and you buy only in states that don't focus on suing for perceived wrongs, it won't be a problem, most of the time. ;-)

@Andrew SwaimHey Andrew,  Id be happy to chat about what you're looking for, I'm a full time investor in Virginia Beach and surrounding regionSent you a message 

Your mentor has needs; try to meet them and develop a mutually beneficial relationship.A mentor can benefit your growth, but it's not as simple as one post on a forum full of strangers.

I've previously found cost segregation studies to be highly beneficial, particularly as a strategy to offset taxable income from both my full-time employment and rental properties.

It's hard work and takes knowledge vetting flippers and their contractors, understanding rehab costs and time lines, knowing ARVs, and keeping capital deployed full time from flip to flip (which is necessary or your annual returns decline to levels that could be achieved with a less risky strategy).