In Fayetteville you have relatively inexpensive houses in an area with a high rental population due to Fort Bragg.

High rental demand (Section 8 too). 

A garage conversion, however, may not be subject to the same level of scrutiny.Parking Considerations – Parking is becoming increasingly valuable, especially with the rise of high-density micro-units that often lack designated parking.

How SB-423 Accelerates Coastal Development: // Faster Permitting ·For projects with 150 units or fewer: - Eligibility Review deadline: 60 days from submittal - Approval deadline, including Design Review: 90 days from submittal · For projects with more than 150 units: - Eligibility Review deadline: 90 days from submittal - Approval deadline, including Design Review: 180 days from submittal · No public hearings or environmental impact reports for qualifying projects // Smarter Development Rules · Excludes high-risk areas, like those prone to sea-level rise · Ensures projects meet affordability and public investment requirements // More Housing, Less Uncertainty · Projects stay approved if at least 50% of units are affordable and include public investment beyond tax credits · Opens up new opportunities in previously restricted areas · Clearer guidelines help developers plan with confidence

@Ty Coutts I agree it's to high , searching for new lenders or PML , I didn't account for maintenance because it was basically a full gut , everything is brand new. 

However, due to high property costs in our local market, we have been exploring opportunities in more affordable states, including Texas, Pennsylvania, Michigan, and Ohio.

Quick sale and high profits to re-invest.

You want to make sure that the developer can perform and that the type of development proposed is needed in the market and that the neighbors don't oppose the project.

@Jerry Chilimidos,Here is a list of lenders who specialize in lending to IRAs and 401Ks:https://www.biggerpockets.com/member-blogs/2810/50272-list-o...I don't know where your rentals are located and how they are performing but selling might be an option vs doing cash-out refi.I would certainly consider option C.

Quote from @TJ Dittmar: @Jaycee Greene not quite that high I'm seeing comps in that area averaging $1300@TJ Dittmar, got it.