So in your examples the first option would be commensurate with what we typically expect if I am understanding correctly.  

You didn't say what your credit was, but if this is your option based on credit, it might serve you to wait a few months until your credit is at least 660 where you have MUCH lower costs available to you.

I scanned through zillow and found upstate ny and Ohio state are  affordable and more options to choose from.

That way my current house won't be counted.It seems #3 is the only viable option but I am not sure if the mortgage broker is right or not.

There are no other options to manage the property, and I can't fly to another continent to run a tiny farm!

In my opinion, the refi is a good option if the numbers work...your other option would be a home equity line of credit. 

Columbus and Cleveland have good options for turnkey properties.

Hey @Alba Cheung, I am guessing you have a cleaning team in place, if so, there are low cost, high touch options or high-cost, low touch options.

Lot of newbies don't have that option. 

Looks like a solid property in a decent area - I would think that at first glance (just guessing) is that the 3 bedroom 1 bath is the problem - thats potentially a lot of people sharing just one bathroom - renters for 3BR homes are probably going to always go with more bathroom options