The alternative is I pay cap gains taxes and dump the capital into my rebuild project on my primary which would allow me to rebuild without any financing at all. 

@Dennis Bragg I keep getting hung up on the depreciation end as if its allowed or not.

If so you may have some full doc options which have the best rates typically and terms.Like others have mentioned you have DSCR loans too but this only allows you to purchase non owner occupied properties (not primary residence or second home occupancy type properties).

No extra fees added for repairs, I'm allowed to contract my own people via the PM to do services(HVAC, lawn, water heater, etc.)

No one is going to allow that and construction-wise, it is usually not cost-feasible for the output rent on such a large property.

Another tip: I think if your schedule and time allows it, go and stay at the property for a night or two.

This allows you to focus on finding properties that align with your overall goal. 3.

So I am hoping the council would allow us to move into one of those studios.

We also allow instant book but only to folks that have positive reviews.  

Some states allow series LLCs as well.