Without the ability to prove at least some experience I would expect it to be difficult to find private investors of a deal that size.

My long term real estate goal is to purchase rental properties that cash flow and create passive income that I can use to roll back into my investments and increase my portfolio. 

The loan was quicken loans, and I feel their appraiser just dropped the ball, saw it was too difficult and moved on to the next one.

It seems to me like an easy 3% ish percent equity gain or a way to reduce the loan a little and increase cash flow a bit for almost nothing, that's my thought any way.  

Im just starting out and currently in an online realestate school but it's coming off as difficult.

If the OO rate drops below a certain percent, then it can be difficult to obtain bank financing to purchase a condo.Some condo associations will demand to approve any tenants.

There are some tools that you can use to help you collect rent etc. but the renting will be difficult you will need an agent most likely. 

I joined this community to learn about real estate but more specifically how I can use real estate to passively increase my net worth.

The market in Idaho Falls and Rexburg area has been rather difficult to find any deals the conventional way.

I would go for the 3rd unit because you're going to be increasing your income and cashflow plus long term you'll have increased the value of the property by X amount of dollars which you could then apply to another property or toward those loans.