Any creative ideas on ways to optimize this or alternate ways we could allow the upstairs tenant to regulate their heat? 

From a purely financial perspective, the optimal solution would be to leave the mortgage in place and simply use the windfall for investment purposes.

Part of getting into REI is so that we can spend more of our time together rather than spending more than half our day at other jobs and commuting, getting to work together is a big part of why we want to take this on (and the potential that RE Investing has for financial freedom).My Concerns: I originally thought I would develop myself as a contractor and do most of the work myself at first, but when I consider the time constraints (holding a house way longer to do the work myself, and the quality of work suffering) I realize this isn't an optimal plan.

Hey Bigger Pockets Community,My name is Kyle Starkey, and my background is in Marketing and General Business Optimizations and workflows.

Nothing wrong with being nicely comfortable and content and doing what matters most to you Instead of hunting for another deal or optimizing every dollar of equity!

Being not from the same industry in my current situation, I know it took me well over a decade to first understand how I can optimize my earning potential and then eventually somewhat be successful in that. 

@Aubrey HardmanI believe the answer you are looking for depends on your personal goals and what phase you are currently in.Phases of a RE businesss - Buy a Million(Acquisition), Own a Million (Growth/Optimization), Distribution (Maximize Cash Flow)If you are still in the Acquisition phase of your business, you should be setting all of those funds aside for acquiring new properties or investments to add to the portfolio.Keep in mind that the ROI is often better keeping the property leveraged by cash out refinancing and putting those funds to work as well during your growth phase.

This is also a great tool to use to triangulate which home the "bring beer for password" network is coming from. try adjusting the wifi channel on your router and test to see how it compares. google, "how to optimize wifi channel" for more detailed how-to.

Could you guys provide any insight that could help me achieve or optimize my goals?

Your CPA and attorney together can advise on best entity type for optimal tax efficiency.