:@Marqus FreemanMost effective doesn't go together with convenient.

Size 0.285 acres, convenient location on a corner lot.

You can use private money for additional projects or you can definitely do option 1 if it is more convenient and you want to stick with the conventional route. 

Tenant elects to accept the property in its current condition and/or they are waiving their opportunity to inspect, at their own choosing and for their own convenience.

I order off Amazon and have the items shipped to my housekeeper to resupply as needed - super convenient.  

Or just open a business Gas Stations, Convenience Stores, small hotels/motels require 24/7 staffing they all require 5-10 people to run the whole thing, close family/friends all can live in close quarters working the business. 

Larger units (2-3 beds, as opposed to 1 bed) tend to have a little stronger cashflow in our experience, but having a nice unit mix (some 1 bed, some 2, some 3) in a triplex or fourplex can also be convenient for you while living in it and open up options for good tenants to "trade up" within the building rather than move out when their needs change. 

Going back to the 1.5 Million dollar example above and let's say for convenience the total monthly fee of all 6 fees is $500/month. 

It isn't true for all areas, but leaving the convenience of being close to your investments adds an element of risk.

People pay for flexibility and convenience all the time.