entirely stick frame and if stick frame are you using TJI joists, what kind of structural sheathing/fire rating requirements are necessary? 

This decision will also be impacted by your interest rate.

Cash out refi gives you a new fixed rate loan for 30 year term.Best,Jamael RomansUnited Mortgage Corp Thank you so much for your advice!

You'll pay a higher rate and may need to have more of your own money in the deal in case of unexpected repairs. 

In your case, changing the property from a rental to your primary residence constitutes a change in use.The depreciation recapture will be calculated based on the fair market value of the building at the time of conversion, not including the land value.Since you're tearing down the existing structure, the entire amount of depreciation taken over the past two years will likely be recaptured, as the building's value at conversion will effectively be zero.The recaptured amount will be taxed as ordinary income, up to a maximum rate of 25% for residential rental property (Section 1250 property).

Credit score and loan size can also affect what rate you may find. 

My in-laws loaned us the total purchase price minus $5,000 on a 3% interest rate.

It is in the area that has decent short-term rental rates based on airdna and what property managers are seeing.How much more in maintenance have you all noticed on a short-term rental versus a long-term rental?

My main concern is the interest rates being so high now as to whether what I'm hoping to achieve is really even possible. 

They lowered the “taxable value” by 40-50% and then raised the tax rate about 35-45% lowering everyone’s taxes that year.