Adam and Nate have great responses here.

If you aren't in a hurry, you can afford to wait a little bit longer.A few other responses mentioned that your closing costs are a little high. 

However, precise execution according to IRS rules and clear documentation in the divorce decree are crucial to ensure it qualifies for tax-free treatment.

Given the substantial prepayment penalty and your current low DSCR, it’s crucial to evaluate how long you plan to keep the property and whether the savings from refinancing will surpass the cost of the penalty and associated fees.

Skepticism is crucial, but careful market analysis, cost management, and realistic expectations are essential.Good luck!

Below that was her response to a 30 yr fixed rate DSCR rates, plus origination and underwriting fees. 

Everyone hit the nail on the head with their responses.

Looking forward to your responses!

Option 2 I have similar response to option 1. option 3: We have had STRs since 1999 which puts my STR longevity in rare territory.  

My favorite is when the reps and warrants state that the loans are being sold as is and the seller will not take any responsibility or guarantee that the loans are enforceable or not, even if they were the sole cause of such  unenforceability.