She can always cash out within 3 years of placing her primary as a rental and not have much opportunity cost loss.

Hi, My house was a total loss in 2021 have been struggling with finding a builder to get the house rebuilt.

Normally when you hear cap rates this high the expenses are not calculated correctly or certain expenses are omitted (no vacancy loss, no management fee, light on repairs etc). 

You might also be a good candidate for a small boutique hotel, an operator looking to retire will often entertain seller financing on fair terms and you could likely qualify for a SBA loan to help with your vision. 

I realize I could cash in on any of the above and decrease the new mortgage in turn lowering my dti but my intention is to not face any tax losses by selling from any of those accounts before the end of year.

So, if that business is showing a big loss after adding back deprecation, and other add backs for rental income, that loss (or gain) will still be  calculated  into your debt to income ratio. 

You might not start in it right away, as you may need capital and experience, but you will at least have a better vision for your end game.

If you are issuing a Perm Loan you should include 12/mo Rent Loss coverageThe list could go-on, but this is a solid foundation to start. 

I'd also recommend dumping the garages there's almost a total loss on that unless you are putting units above them on a dense infill lot for additional units it's not worth the cost of construction. build cost is pretty high for your market for three story suburban walk ups. we could never build at that price and make any money. suburban sells for 160k a door in our market with land. get on yardi make sure you Arne't going to lose money on it.

Then for sure you are the owner and there is no dispute with insurance companies if you suffer a loss.