This and the size of these spots will determine the minimum acreage lot you're looking for. 

Here’s a simplified approach:Calculate Costs: Determine the net gain from selling each property after costs.

All of these would need to be answered and plugged into a blended rate calculator to determine if it makes more sense to cashout refinance or use a HELOC. 

Hey Boady, I love your determination, hunger, and work ethic!

Here are the Fannie Mae guidelines for legally non-conforming properties:If the Property's characteristics are legally non-conforming, you must:ensure the Borrower executes the Modifications to Multifamily Loan and Security Agreement (Legal Non-Conforming Status) (Form 6275);confirm whether, if fully or partially destroyed, the Property's Improvements can be fully rebuilt to the pre-casualty condition per current laws, zoning requirements, and building codes; and if the Property’s Improvements cannot be fully rebuilt to the pre-casualty condition, evaluate if the as-rebuilt Property will support the Mortgage Loan at the current Tier, and document your analysis in the Transaction Approval Memo.To assess the Borrower's ability to rebuild Improvements on a non-conforming Property to a level that will support the Mortgage Loan at the current Tier, you should consider: conducting a threshold analysis to determine the resulting actual amortizing DSCR if the reconstructed Improvements cannot be rebuilt as-is per current law; the likelihood of a casualty event (e.g., wind, earthquake, fire, flood, mine subsidence, etc.); the percentage of damage to the Improvements at which the Property’s jurisdiction will require the Property be rebuilt to current zoning and land use requirements (i.e., the destruction threshold); which Property characteristics the destruction threshold percentage applies to, such as market value, assessed value, replacement cost, or unit count; for Properties with multiple buildings, if the destruction threshold percentage applies to each building, or all buildings as a whole; the replacement cost to rebuild per current requirements for zoning, and land use; the Property’s continued marketability, and economic viability; the amount and type of Borrower-maintained insurance coverage required per Part II, Chapter 5: Property and Liability Insurance, Section 501.02C: Ordinance or Law Insurance; insurance loss proceeds payout, compared to increased rebuilding costs, including from building code changes, Americans with Disabilities Act compliance, and the municipality's local zoning requirements (e.g., green compliance for new buildings, etc.); the sufficiency of estimated insurance proceeds from ordinance or law insurance and other coverages to repay the Mortgage Loan in the event of partial or full casualty, or condemnation; and for a Tier 3 or Tier 4 Mortgage Loan, if requiring execution of the Limited Payment Guaranty (Form 6020.LPG) would mitigate the risk of the as-rebuilt Property not supporting a Tier 2 Mortgage Loan.

If you are not going to rebuild they will settle at actual cash value/market value minus the land.There are policies out there that will settle at cash-out replacement cost but they are rare and typically offered by higher end insurers for higher end owner-occupied homes.Every insurance company uses software to determine the estimated replacement cost of a home.  

I can totally see how a rookie, in the name of the podcast, could hear this and determine that defaulting is clearing the slate, offering an opportunity to save and start over in 2 years. 

You should check out conventional mortgage rates/payments vs those for DSR loans.Should also work backwards with NEW property taxes and insurance monthly amounts to determine loan amount that allows cashflow you want.

So, CPA determines that actual taxable income for the year could be as low as $85,000. 

To be determined!