We negotiated based on the property's existing condition and potential post-renovation value, successfully securing a favorable deal for both parties at $100,200, enabling us to unlock its hidden value.

Yes, this is a very unique exit strategy for real estate that enables you to take the capital gains tax free, but not the depreciation.FYI:  the sec121 exclusion is for living in the property 2 out of 5 years...I assume you'll be able to cover the cash flow of paying for college first, then selling the property after college as I understand your plan.Good luck.

-We have debt pay down, as our tenants progress through the mortgage-We have tax benefits that enable us to trade up or simply claim deductions.What refinancing does for YOU is allows you to catch those profit centers.  

These rules, which include a requirement that sellers set aside a portion of the purchase price for buyer-agent commissions, prohibitions on modifying the commission, and permission to filter listings by commission, all enable NAR, its co-defendants, and its members to maintain buyer-agent commissions at supra-competitive levels unrelated to brokers’ experience or the services provided, steer home buyers away from lower commission homes, and drive out discounters—among other harms."

The rate will be high because of the looser requirements, but it will enable you to buy an STR with 25% down, no questions asked. 

You could try to extract equity in the form of a HELOC but that presents it's unique risks if you have a floating rate. 

Seasoned investors will tell you to buy but also have 500 rental properties and access to a plethora of resources that enable them to purchase at steep discounts.

-Extract your equity through a cash out refinance of your existing property-Get a home equity line of credit -Sell the equity in your home to a company like Hometap-Use the equity in your home as collateral on a loan from a private investor -Get a low interest credit card that is secured by your home equityAll of these options still require a healthy down payment and a good deal with returns that are above and beyond your cost of capital so that your debt is levering up your profit vs levering up your losses.

Also, it’s not just “70 bucks” because those unethical agents who manage SFR part time extract more than management fees on average.  

On the positive side, at least in Massachusetts, there is a special paragraph of the law that applies to rooming houses / lodging houses, which enables just 7-days’ notice to start an eviction for cause of an offending tenant when they are doing something that is creating significant issues for their neighboring tenants (or the LL).