There is an incredible amount of points to consider when weighing the options on something like this and honestly, I don't recommend it to very many people at all ....even seasoned tradesmen and investors.

If you’re looking for ways to make the numbers work, sometimes that means evaluating different markets, financing options, or property management strategies that help mitigate risks like vacancies and maintenance surprises.You’re not alone in feeling like 2025 could go in multiple directions, but one thing remains true—real estate continues to be one of the strongest vehicles for long-term wealth when approached the right way.

As you indicated you have plenty of options to start.

It’ll save you headaches later if she tries to escalate things.Document Everything: Take pictures, write down the history of your interactions etcOffer a Transition Plan: Just like my client, I’d recomend offering her a temporary storage option nearby, or even a small rent discount, to show you’re not trying to kick her out - just keeping the property safe and up to code.

Quote from @Samuel Pavlovcik: @Nicolas Tow Your Architect is correct that it sounds like the only option for you would be to obtain a Zoning Map Amendment to change to RT3.5 or higher.

Hard money rates are really high right now, plus the rates once I cash out refi are high making it seem like the only option for me, but with the rates on both ends, just doesn't seem to justify.

Keep providing value add options for your owners & they'll keep knocking.

I do have monthly mortgages to be paid and not having rental income to offset my negative cash flow has been a learning experience and really trying to think of what options I have to have better success at this.

There a ton of great DSCR options you can find on the Lenders tab at the top of the page, or connect with an experienced broker who can shop all the best lenders for you and educate you on the best options out there.

These solutions can make a huge difference, and the long-term option will really help set your STR up for success.