. - When we've review these options with clients the ending outcome is typically that it's easier to forgo the 121 exclusion if you want to keep this property; and do a cash-out refinance (taking on more debt isn't taxable) instead. 

Many traditional banks won’t touch them, and even DSCR lenders will avoid them if the build out is done prior the securing long term debt. 

You’ll still be personally responsible for the debt and it will still show up on your credit report/DTI if that’s what you’re trying to pull off.You’ll increase your interest rate by 2-5%?

Add-Backs (Non-Cash Expenses)Depreciation (Line 13)Depletion (Line 12)Amortization (Reported elsewhere, often in Part V "Other Expenses")Business Use of Home Deduction (Line 30)One-Time Expenses (if documented as non-recurring) The "magic" you are mentioning IS adding back the depreciation upping your income. what @Michael Plaks is saying is 100% correct in that your INCOME to be used for the debt to income would be exactly the same in this case because if not paper loss is shown (the deprecation) then there is no loss to add back, so you get credit for the income.  

Are there specific national or regional agencies that coordinate temporary housing for disaster victims?

There are large national and regional builders that list their properties on our platform to include some of the largest names in building like DR Horton, Toll Brothers, Lennar, LGI, Century, etc.

Financing your second property can be tricky since lenders may only count 75% of rental income toward your debt-to-income ratio, so get pre-approved early.

Your situation presents a classic trade-off between long-term appreciation potential and short-term debt reduction.

I know this is a slower process than you might like but $3.3M in debt is a lot for most people.

Is there debt on the property or are you doing all cash?