It sounds like you are already doing move-ins perfectly with photo evidence and proper documentation.

However, in markets, like Dallas - proper, condos do well, but there are so many things to consider.

I don't agree with your lender that you have to live in the property if you are using a conventional loan, but depends on what product they are giving you, maybe a work around for that.I would not purchase based solely on what income you can derive from STR.

The risk of the business is on you and whether you have the expertise to pick the right asset, in the right location, and operate it properly.

Give them proper notice and get them out2. 

Proper structuring with professional guidance is key to achieving both parties' goals.This post does not create a CPA-Client relationship.

Is there a combination of lending products and tactics you see that can make it possible to refinance after possibly 2 years and get out a large enough portion of funds to use towards the downpayment on another property?

Another way is to switch your product from 30 year fixed to a 5/1 ARM so now you're taking program or financial risk to arrive at a lower rate such that you can pass this FHA SS rule (5/1 ARM FHA has a lower rate by up to .50% than the 30 year product typically).

—and work with an accountant to make sure everything is properly documented.As long as your primary goal is to sell the property after renovating, your profits won’t be taxed like long-term rental income.

It depends on the lender but at a min they must follow TX SML or lending laws in the state in order to compliantly lend in TX, on whether choose to apply this guideline to all types of occupancies or transaction types (non owner investment, second homes/primary residences, etc)80-85LTV on rental properties is only on the purchase for fannie/freddie loans but on rate term refinances its max 80% and cash out max 75% for 1 unit and up to 70% for 2-4 unit cash out conventional.On HELOC's and rentals are up to 70-75% depending on the HELOC investor or product.Its good to distinguish between what the lenders are willing to do and for which product and also these loan products must abide my state law as well as an additiona layer of "overlays," on top as well (whichever is worst / most conservative).