Given these factors, is it worth losing some cash flow by refinancing to a conventional loan, or should I explore other options?

I am exploring the idea of buying land, with the plan to pass it down through family. 

Hey BiggerPockets Family,I’m thrilled to finally be joining this amazing community after spending some time exploring the forums and listening to the podcasts.

Buying in small towns can also limit you access to trades or they charge you more for the trip. 

Also, I'm looking for something to keep me busy as I ease into my retirement.You are trying to hack the primary residence part to reduce taxes and if you really can do it and you really live there then it will be fair, but if you deviate at all, the town will come for you and you will never get anything renovated if they think you aren't living there and it's not liveable.

If you're in one of the Primo in-town neighborhoods your rent floor should be higher.Compared to short term rental - your gross rents will be lower, but that comes with lower headache. 

Their concept is not new and has been around for ages with people renting rooms in college towns and more expensive markets (NYC, LA) however this is a centralized more hands off management approach to self managing by letting them do all the heavy lifting for you which allows you to scale in less time so yes the concept definitely works and even better with their technology behind it.

If you need help calculating potential returns or exploring financing, let me know!

Persistence in reaching a supervisor or someone with decision-making authority can sometimes yield better results.Contact HUD and Explore Options: Immediately follow up with the HUD counseling representative.

My wife drives across town to get her hair done.