You're likely ahead on capital gains as owner occupied goes, but the actual breakdown in terms of % you need to be clear. 

Link: CLICK HERE!

I'd suggest going to Appraisal Institute clicking on the "find an appraiser" link and then contact a few appraisers in your area. 

If there is any equity at all above the first, or if it makes sense to take it back, rehab yourself, and make Some spread, then go ahead and foreclose.

Middle class folks have brimming 401ks, a bunch of equity in the primary residence (and growing) and maybe some wage growth ahead as labor markets continue to tighten. 

Thank you everyone really appreciate it been working hard and trying my best to gain as much knowledge as I can so that I am well prepared for what's ahead.

At the end of the day, we have an email from the city showing that we're grandfathered in and STR is allowed so I think we've got ourselves covered.I suppose I'll give our lender and the insurance company a heads up to avoid any speed bumps later down the line.Cheers!

Go ahead and close on the properties asap using 100% private money.

If the basement bath doesn't have a window, just go ahead and install a fan even if it is senseless.

If your goal is to pay more for your properties, then go ahead and pay them off with that extra cash.