For some, simply holding the portfolio you own and paying down the debt satisfies their investment objectives but someone like yourself who is looking to scale can't achieve that at the pace you may necessarily want if your real estate is stagnant on appreciation unless you have additional sources of cash you can throw at new acquisitions.

I am interested what any experienced people have to say about how I can achieve my goal or any other comments/advice! 

I witnessed this myself first hand.

For what it's worth, I've never heard of the current ordinance being enforced (and I can confirm firsthand that there are many properties with occupant numbers which exceed the limit in Boulder).

In that respect, you will have achieved a higher basis for depreciation and exclude the gain.

Experiencing these first hand in your own home provides greater flexibility while you figure this whole racket out.Thirty years ago, I was fascinated by real estate opportunities in an emerging market (Brooklyn) and spent lots of time looking at cool warehouse space in places that are now 30-50 X the price. 

It could be worth checking out other custodians, not just the ones with checkbook ability, because you may find that they offer the quick turn around and funding times you are looking to achieve with that checkbook ability.

The deal exemplified our ability to identify opportunities, execute efficient renovations, and achieve impressive returns.

I can attest to these methods first hand.

Take a step back to look at the bigger picture of what you want to achieve and break it down into smaller, achievable steps.