effectively, you'd either need to look for a lender that would let you use the other property as collateral (cross) so that you can avoid actually taking the cash-out (this is rare in terms of institutional DSCR lenders, but fairly common in the hard money or private money space)...

because I'm thinking no one can really tell you when to sell your property, since it would be difficult to get a loan from a private/hard lender first off.

This would be better answered in a private setting with your tax professional to determine the best steps moving forward and structure.

My second question is for future private money lending.

Any advice for first time buyer on where to find private money and/or a good realtor/property managers in my area of purchase.  

Can we talk more in private message?

Be very clear with your lender rep about this point, and see what, if any options, are available with this outcome.If anyone would like a recommendation for a as-is based DSCR provider that I've had the most success with, please reach out privately.

And you mentioned when you sent your letter.Looking it this as an investigator, not a lawyer:You may not have to proceed to trial, but you may have to get to discovery, predominantly to see how - and exactly when - you could have been served with the “NOTICE OF UPDATING MAILING ADDRESS FOR DEFENDANTS AND OBJECTION TO ANY CLAIM ON SECURITY DEPOSIT,” alleged to have been “furnished” to you on March 24, a Friday last year.

I can get a conventional loan, however, I would prefer to use a hard money lender or private lender to fund my first deal.

Have you ever partnered with a private or hard money lender for a real estate deal?