Do you have alternatives @Nate Marshall?

The alternative is I pay cap gains taxes and dump the capital into my rebuild project on my primary which would allow me to rebuild without any financing at all. 

If you are the lone supplier of a specific housing product and there's pent up demand you will absorb your units quicker and have tenant stay longer given the lack of alternatives.

I would look at wisp as an alternative comparison when talking to realtors. 

If DTI is a problem for a new investment property loan but you have everything else (credit, downpayment, etc), then DSCR loans are probably an excellent alternative.

I'm generally a proponent for alternative lenders if they can provide better leverage or if they are needed due to time constraints.

Am I approaching this the right way, or am I missing a better alternative?

Denver Creative Housing, Denver Sublets, Roomies, Roommates, and so on, there are a few good ones)Also, I use Roomies as well because it is a site specific to finding roommate tenants, and there is a huge demand for it as well, so it is a great alternative to fill vacancies for houses if your owners are open to it and you price it correctly. 

Alternatives to ConsiderIf you want to involve an entity for liability protection or other reasons, here are some potential approaches:Assume in Personal Name and Transfer to Entity:Assume the loan in your personal name and later transfer the property title to an entity.Important: Transferring title may violate the loan’s due-on-sale clause unless explicitly allowed by the lender.

With my last (2 years ago), I had to take an alternative exit strategy to avoid a loss.