I would appreciate any insights and additional things I may be missing.

IMO this is much too little additional return to put your personal residence at risk.  

That is in addition to clauses that require anyone that stays more than 7 nights in 12-months to apply (then it becomes our choice if they are treated as a temporary occupant or tenant) and prohibition of subleasing.

Keep existing and add an additional -~2000 sq feet 3.

In addition to that, you could open up a credit card to get that credit history rolling.

However, just because I don't agree with it doesn't mean I am in favor of the Government being given additional power to enforce additional laws and restrictions that infringe upon our freedom.

A low LTV refi to get you some additional cash should be enough to clear this up.

This would depend on whether your property is overvalued by the tax assessor and in turn you are paying additional taxes on that additional valuation.

That could be achieved without spending an inordinate additional amount in cap ex; In fact all I have seen had these items in common1.

Quote from @Chris Seveney: Quote from @Devin James: In 2021, we saw buyers upgrading to larger homes, taking advantage of 3% interest rates to afford an extra 300+ square feet.Today, smaller homes are selling much faster as higher rates make additional square footage less affordable.While rates are historically average, I don’t see them dropping significantly.