The better the rates, lenders generally want to see more experience, higher credit, occupancy and DSCR requirements. 

If it is a credit/equity line, you could provide a lender letter that the funds are available immediately for funding - and cured any recission period. 

If the property were owner-occupied, would I only receive credit for one rental unit's income, while the non-conforming basement income wouldn't count?

Quote from @Griffin Malcolm: Open an LLC and apply for a small business line of credit from Key Bank.

WE dont pay a fee for the credit line as I mentioned just 1/2 point for each new loan..

However, you can claim a tax credit on your California return for taxes paid to Oregon, mitigating double taxation.If you only plan to own this one property, consider using umbrella insurance as an alternative to an LLC.

For example, you are not allowed to co-mingle personal funds with plan funds or work on the property yourself.I think that cashing out an IRA to buy rentals is not a terrible idea if you can get decent returns in your market.

Should We:Sell, take advantage of the capital gains law, move, and pay the mortgage off on the new house, credit cards, etc…?

I looked into this as well since I'm getting terribly bent over on my w-2 taxes. 

This is much lower than the costs associated with refinancing.Benefits of Mortgage RecastingLower Monthly Payments: The most immediate benefit is a reduced monthly payment, which can free up cash for other financial goals.Save on Interest: By reducing your principal balance, you’ll pay less interest over the life of the loan, potentially saving thousands of dollars.No Credit Check or Appraisal: Unlike refinancing, recasting doesn’t require a credit check, income verification, or home appraisal, making it a quicker and simpler process.Keep Your Current Interest Rate: If you have a favorable interest rate on your current loan, recasting allows you to maintain it while still lowering your payments.Drawbacks of Mortgage RecastingRequires a Lump Sum: Not everyone has the cash on hand to make a significant lump sum payment, which can make recasting inaccessible for some homeowners.Doesn’t Shorten Loan Term: While your monthly payments are lower, recasting doesn’t reduce the length of your loan.