You were not afforded a reasonable (in most states, 30 days) amount of notice to re-market your property. 

If you do not qualify, you would then look into if you would qualify with renting your departing residence. 75% of the lease will be used to offset that departing residence mortgage. as you mentioned the timing of renting the place can absolutely be tricky so you would hope you do not have to do this.Finally, and I guess would be sorta of a trick, but we do bridge loans on occasion in this case IF you can qualify once you get the property rented at market value even if debt to income ratio is too high before it is rented.

I find it strange that no one has if it's allowed, but if you are first to market, you are essentially the guinea pig.

I own one rental house in Cypress, but with the current market I have not been able to find another existing single family home to buy that looks like a good investment. 

It sounds like a single family house where you will be living in the house(personal use).Therefore, you may not be getting the tax benefits you think you are.Consult an accountant.I am not sure why your sister would agree to this as well, she is losing $170,000 in this transaction and she faces the possibility of you increasing her rent.You also have to charge market rent or close to market rent or it is all deemed personal use.

But if costs are high or demand is uncertain, holding onto the land while monitoring the market might be the better play.

Here’s how the ATI Exemption would be calculated:ATI Market Value (purchase price): $1,000,000Previous taxable value: $700,00025% reduction (ATI Exemption): $750,000New taxable value: $750,000Without the exemption, your property would likely be taxed at the full $1,000,000 value.

Explore off-market deals where competition might be less intense.Don’t get discouraged—success in these markets often comes from building strong connections and thinking creatively about deal sourcing!

Even at 30%, that's still 15,000 potential prospects.What you want to focus on is a competitive market rent.

I don't know if shifting to MTR could generate greater interest but it doesn't solve the marketability issue and all you are doing is punting the root issue down the road.