We would offer more of a budget-friendly option which could include FB marketplace/goodwill -Manages furnished rentals (STR/MTR) for investors.

Your post about summarizes what I figured my best options are. 

Cashing out $400k and throwing it in an index fund is a viable option as well.

I think there’s some sort of option of to do a little refi on both house 1 and 2 and get the money needed to wipe out the line of credit(allowing for bigger flip opportunities, especially if I partner up with someone) and also renovating that garage space with the private investor as long as it is under 1000/month.

I look forward to your response and the opportunity to discuss potential options that align with your organization's leasing policies."

Sounds like I might need to follow Frank’s advice and consult an attorney, although that will definitely be the last option I pursue.

If not, they may want to speak to a mortgage broker local here in Florida to help expand their options! 

Legal and ethical implications: Agents engaging in such practices may face:Legal consequencesLicensing penaltiesEthical violationsThese actions ultimately harm consumers by restricting options and potentially inflating costs.The new system, allowing buyers and their agents to negotiate commissions directly, promotes transparency and fair competition.

Cash for keys is a good option but it depends how much they owe.

That really isn't good enough in our opinion.Another option for you is if your property is in a realtively safe area, to install a wi-fi connected smart lock.