Their goal is to eliminated group homes, half way houses etc, even STR, so check out the local zoning as well. 

In my case I sold off appreciated properties in a location I deemed as having limited future upside, and used the proceeds to eliminate all debt on the better located prime properties I wanted to keep long term.

The problem is, that's not proper accounting because a credit card is a liability, and doing this workaround will reduce your assets rather than increase your liabilities, which totally messes up your balance sheet and debt-to-income ratios.  

That is the issue I am having now as my wife and I have great paying jobs and just cleared all our debt.

In this case even if the project went south and you broke even or even lost money, the equity (debt) you used would still be covered by the income you are earning on the rental property. 

Day traders are not exempt unless they elect mark-to-market (MTM) accounting, which eliminates wash sale tracking but taxes gains as ordinary income.To manage taxes, track trades closely, avoid overlapping purchases, or consider MTM election if trading actively.

If the bank prices their debt based on the fed rate you typically see WSJ Prime + 1%.

This is regardless of having any debt service.  

The cleanest route but the least attractive method for most investors is to have the investor provide debt.

Additionally, since my parents are nearing the retirement age, I'd like to prioritize low-debt, high-cashflow deals.