Option 2 is to do 1031 exchange both into Multi-family homes/apartment.

Housing stock is old and winters are rough. 

Is SF simply a higher PE stock like Amazon vs DC a more stable PE stock like say Coca-Cola?

Just be prepared to sell your pitch.If you have other properties, your local CU can grant you a secured loan using them as collateral. i also just found out the other day if you have a stock investment or passive investment income flow- The bank may be able to take that as some sort of collateral ( I can't remember what the exact term for that is).

Stocks are down and unemployment is up. 

If the stock, shares, memberships, or other equity interests are wholly owned by the owner of the propertythen the title policy continues in full force and a Form 107.9 endorsement is not required.

You can buy and rent when a market is headed up a bit, just like a business or a stock that you sell before a market starts to fall.Buy and hold investing is a term that does not make good business sense.

Stock is a bit of gambling, I rather owning a property and renting it out.

I'm offering equity in exchange for the down payment. 

This is very different from bank savings or investing in the stock market where you own 100% of the assets that you have invested.