If we stay, we are staying in with $500-$800/m which is cheaper than other renters but not so great as I was expecting living 'free' or $100-$200/m.

County recorded documents are necessary and sufficient, IMO, and until blockchain technology can show a better, faster, cheaper alternative, it is a non-starter. 

Using basic numbers, assuming I sell a property for $10M and after cost basis is accounted for and mortgage is paid off, I have a net taxable gain to me of $3M.I'd like to purchase a rental lake house property for $1M (funds coming from that $3M taxable gain). 

The building is in a cheaper suburb value only $250k range so I want to get this done affordably and need do all 4 units.

@Adam ShaIf you can buy a home for cheaper than rent then that is a red flag.

There are cheaper one’s in D/F areas but I would be careful as those can create a laundry list of additional issues.

The SP500 has returned "long term" 8.4% nominal and 6.9% real, per Dr Jeremy Seigels 1801-2023 data set and would be fully taxable at sale. 

I know there are other financing options, but the question we cannot seem to avoid is whether or not to hold (and rent) or sell the town home.It's tempting to leverage the current equity, move out and rent it - but from what I've read / calculated, it might not be the best return compared to other options.Ideas on how we can get into another home (larger but cheaper) while also (re)starting our REI journey?

If you're looking to invest in a cheaper market, I would recommend taking a look at a market like Columbus Ohio.

I would look for a professional manager and move on.Remember: cheaper doesn't mean you'll make more money.Start by going to www.narpm.org to search their directory of managers.