Quote from @Conte Cuttino: Property is in C+ area but in a different School district that’s B-If I sale I’ll get 30k profit after 9 months.If I keep as a Long term rental I’ll have to convert the garage into a illegal 1 bed cottage at an additional cost of $35k leaving a total of $107k left in this deal after 70% refi and closing cost.

While this strategy may work, the way it's structured right now leaves you with no leverage and puts you in a risky position as a beginner.

That leaves me with 2 houses, both rented but one of them needs to go too.All this is close to the end of a dead end street.

. - Yet, here you're posting that good employees leave PMCs for better paying jobs.

I get rid of bad tenants regularly and have never paid any of them to leave.

Those kids aren't allowed to leave the 1604 loop during their temporary "leave".2) Downtown can be MEGA, but zip codes are WAY too big to use. 

However, this has to be the primary residence of everyone on title in order to qualify and even if that were all true, we're still only up to $1M that way.I agree with the other commenters, the parents should continue to own it and live in it as their primary, leave it to the daughter when they pass, and she inherits it at the stepped up cost basis. 

Never leave tools on a job.

The down payment is being estimated by our loan officer currently, but we are thinking around 12k which will leave us with around 6-7k leftover from what we had put aside.

With the Yale lock, I can see who goes in and out of the house and when our tenants leave, we can always change the codes from a far.