@German Fernandez Love those options!

The condo will limit the rental options to age restrictions. 

With a family and kids the best house hack is a house and cottage or duplex option.

Gas or electric would be a much better option, safety wise, from a house fire standpoint, CO danger, or danger to children or pets from the open flames. 

Would a home equity loan be a viable option in this situation, especially in regards to eliminating some of the red tape I'm running into with a refinancing an scorp-owned property?

The agent turned down a seller financing option - although it was not ran by the seller - because the agent said the seller is so done with the property that she wants nothing to do with it at all.

I've been at this a while and have over 70% equity in my combined portfolio, and I'm over 50 years of age, so I don't look at creative financing options. 

OC California is very expensive so investing out of state can be a good option.

I can get prime-0.51% on a HELOC but I don't love the risk to my monthly payments if rates rise - that is why I like the fixed second mortgage option. 

If they Counter, you have the same 3 options to respond.