Investing in commercial real estate is fun, rewarding, a lot more work than most people realize and has a ton more details that you don't learn about until you actively acquire, operate and dispose of properties yourself.  

If you have very responsible tenants and they know how to use a fireplace safely, burn only seasoned firewood, do not leave the fire unattended, use fireplace screens and dispose of the ashes appropriately, it works.

______Sinks to be cleaned (bleached if necessary), and garbage disposal tested and free from blockage.

And my wife was for a time a VP at a finance company where they had to dispose of properties they foreclosed on. 

The purchase of the new home would take away a lot of my disposable income I currently have.

Many of these people work in high tech or otherwise have decent disposable income.

Whether you decided to save up more capital to acquire more rentals purely from disposable income, whether you pull a line of credit or loan from your free and clear rental, or your primary residence I’d first identify what your end goal is and figure out what that looks like before you decide how.There are many ways to reach that vaunted 10k per month income figure from rentals and some are quicker and some take 2-3 decades.

Aside from monthly repair expense reserves and mortgage, I'd like to remainder of funds to until I snowball the total amount and life of the loan adding my disposable income to payments when they become available.

At any time, they can issue tickets to the landlord for grass cutting, garbage disposal and other exterior issues.

It's quoted at $2275 to treat, but can I just demo the shed and dispose of it in a landfill?