Even if a family has high coverage, the insurance adjusters still want the lowest option so it's important to also be competitive. 

Remove the kitchen all together and convert it back into two duplexes or is there another option?  

From your options, #1 is a big sink of cash and I can't tell how much that increases you rent. #2 is a no due to cash flow negative. #3 is the way to go.

For managing properties, I have two options: 1.

Feel free to reach out if you need help with financing options or advice!

Looking for guidance on options. new builds aren't hard to finance and I would argue they are preferred to existing fix and flip loans, especially if you have experience. banks look at your experience, your builder's experience, loan structure, permits, etc you need to get an experienced builder familiar with advanced underwriting and negotiations with local, regional, and national lenders. in columbus we do ground up construction for clients at a 20% discount so they can BRRRR out of the new build with equity and we have pages and pages of data on what we build and why and it's all supported by market statistics. 

I have another one were I optioned 120 acres that just got brought into long term planning for chips act. paid 5 million for it and spend 10k a month negative..

That said, selling is another option to free up cash for a lower-cost, higher-cash-flowing property.

(And since I also got bookings via my earlier VRBO pre-approvals, didn't realize until the inquirer let me know they were going with another option, that VRBO holds it for 72 hours.) 

couple of bullet points to bring up:* she's on M2M* I told her on 12/7 of the new rent which would apply to a new Jan. 1 effective lease, this is when I got the "I'm moving out" message* Sent her the move-out letter on 12/11, with options for her to either be moved out by 12/31 (she's fully paid up for month of December) or by 1/11 (30 days from date of notice) and pay a pro-rated rent based on her CURRENT rent amount. her choice, either is fine with me.With all that said, I'd love to do as you mentioned and post a notice on her door.