For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

As a passive investor, you've got to weigh the risk and reward.Operators usually evolve (less in favor for LP).

Most buyers find it more attractive to purchase a place that has some future income built in when they buy it.

Keep in mind this will be a 30 year or forever hold with appreciation the ultimate goal and cash flow at year 20-30 being retirement income (hoping to stack 10 of these if i can)Here's the numbers, I'm planning to close in April i just got back from taking the wife and kids to the build site, they approve so that's nice haha.

To allow myself to create a form of income that doesn't restrict you on your work-life balance.I joined this platform to learn, grow, and gain knowledge.

If the financial risks associated with Option 1 are within your comfort zone and you're confident in the rental income covering your new debt obligations, this could be a viable path given the potential for immediate home appreciation and avoiding multiple moves.

You can rent it to yourself, but then you would also have to declare that income, so it becomes a wash and not a write-off?  

Actually, given the opportunity to generate rental income and the potential for risk reduction via diversification, modest multifamily residences could be a prudent investment.Kindly feel free to ask any specific questions or seek advice before starting your next real estate venture.

I don't think I could get a very large loan from the bank because I'm currently paying on a mortgage and don't have a lot of passive cash flow.

Look at the whole market and all the factors that would effect income potential.