If you are going to keep a tenant that is difficult, at least charge them market rates!

Understand this is market specific. 

That is a great number and bond markets love it.

I've spent a lot of time on the pro forma as well, but a lot of the assumptions are based on the Houston market which I'm a lot more familiar with.Does this seem like a viable plan?

Great place to live -- not so much when there is little to no leverage to purchase my own home, burn rate goes very quickly, or perhaps I don't know enough.I follow Brandon Turner, BiggerPockets, Grant Cardone and have attended both his Real Estate and Sales & Marketing talks.I would like to get into real estate to one day either purchase or build my own Home Recording Studio.

(Note - No tenants will be sucessful moving with only 30 days notice in this market. 

In general, what is the strategy for choosing rental terms in the current market?

I operate in 7 markets and in each market we have a quality control manager or runner, a cleaner with at least 2 backups, and a handyman/woman.

Are you talking about your local market or just real estate in the US in general?

In my opinion Option 1 could be a bit risky in today's environment as we are not sure if prices have hit the bottom yet, there are positive signs in the CoS market that point to price appreciation in the future, but there is a good chance the interest rates are not coming down for a while, which will have a negative impact on home values.