They explained that Fannie Mae (according to an exchange with their Servicing Portfolio Manager at Fannie Mae for a similar but not an exact loan) does not allow PMI removal for improvements already included in the original loan’s scope until after a two-year seasoning period

Not sure if these are all investment properties or if you're including a primary or second home, but my suggestion would be a cash out refi of an investment property to pay off your debt, and a line of credit on your primary to have available for reserves if needed.

Quote from @Lucas Martinez: Quote from @Theresa Harris: They are renting the entire house including the garage and yard. 

We have some cash savings in the ballpark of 10k ready to invest today not including emergency fund and other savings, but that number is growing thanks to a recent bump in income.Now for the pros.

Alternatives include Stessa (free) and Buildium (more robust, pricier).For testing, a phased approach is generally best.

Without getting too deep into the weeds, there are a few ways to do this, including:- write up an assignable lease and an option to buy which the seller signs, then assign the lease and option agreements to a tenant-buyer.

In addition, the City of Cape Coral has updated codes and ordinances related to short-term rentals that are now available in a searchable database provided by Municode Corporation (3).Short-term rental limitations have been an issue in coastal communities in Florida, including Cape Coral, where investors can buy property and rent it out for short periods at high rents.

Second, your lease should indicate what items are included/covered by the landlord.

But the garage is not included since I need it for storage of my tools and supplies. 

From that point, I’m able to put down 20% of a (350,000) house - ( including closing costs) every 10 months or so.