I recommend holding the money in a separate account to comply with IRS tracing requirements.

You need to determine what is important to you and focus on what you are willing to do to get you to your dream. 

If property is vacant the appraiser determines the market value of rents thus you will want to have a lease and paid rents at closing.

This has worked fine so far and I'm hopeful that they will build in this functionality in the near future.How do you determine what useful lifespan to apply to various CapEx items, @Genny Li?

You can obtain a Jurisdictional Determination from the local Army Corps office.

You communicate with the IRS through your tax filings. 

So now that is entirely in flux and will likely prevent the Corps from even making any jurisdictional determinations at all.

Society can determine whether their rock bottom results in an OD death in a government-provided shooting gallery or whether their rock bottom consists of being woken up for the 20th time in 24 hours and not being able to find a place where they can sleep off the results of their last bad trip. 

HH income is about $130k excluding bonuses and we have no other debt.I'm having trouble determining which scenario is the best approach given the details.Scenario 1: Refinance the $88k to 30 year, no cash-out, drastically reducing the payment for us now and for rental cash flow.Scenario 2: Cash-out refinance up to 70% LTV.

@Matt LuxHave you even determined that your dti is an issue?