If you feel you really want something more special for a nicer flip or something, get a design consultation from someone local who can give you a whole color scheme for the house that will make things pop. 

Priced too high, rehab estimates too low, and they don't factor in the cost of selling (commissions and closing costs). 

I do like real estate, I have a great eye for design, but would hate to have to evict someone—that would be my worst nightmare, so I’m not sure I’m cut out for being a landlord (although I would fully anticipate having a property manager)Is option #3 a far inferior option compared to keeping our expensive house in expensive city as a rental and only having to deal with one property that gives us great appreciation in 10 years ?

Do you use forms or what is your design? 

The addition of a private balcony and standout interior design further elevated its appeal to both short-term and long-term tenants.

Until Fed begins to cut rates I’ve found alternative lenders in some cases to be competitive with banks on construction debt when considering the totality of factors (rate, leverage, depository relationships and pre- payment penalties).

BiggerPockets is full of resources designed to help you along your journey, whether you are just getting started or a seasoned investor.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Most aren't putting anything inaccurate in the deck, but they anything in there is designed to create an emotional response to the property, and anything NOT in there is intentionally left out.  

Given these factors, is it worth losing some cash flow by refinancing to a conventional loan, or should I explore other options?