Lender 2 requires 6 months reserves. they want the borrower to document any large deposits and they want mortgage statements on any investment properties listed on the 1003.The point is different lenders do different things and it's important to not generalize as a broker, but interview the borrower, find their pain points and marry them with a lender that will minimize those pain points for a successful close. 

For the purpose of, say, minimizing capital gain in the same year. 

As an entrepreneur, especially during the startup phase, the goal is to minimize expenses and put most of your money into real estate deals.Don’t let the absence of a CPA stop you from moving forward.

New construction in appreciating areas offers long-term value growth, minimal repairs, and potential tax benefits, but often comes with higher purchase prices and slimmer initial cash flow.

Expediting the liquidation of RLT assets often minimizes capital gain taxes and results in smoother distributions to beneficiaries.

However, beyond giving this group an opportunity to do the right thing (I responded with appreciation for the transparency, the only 2 questions we're allowed to legally ask, and a gentle reminder that we are a dog-friendly property and it's a minimal cost of $20 per night), is there a better way to handle this?

I think you hit the nail on the head here, PM will make $ on the placement fee and in this case, they provided the work for the turn which wasn't minimal, so they made $ there as well. 

This balances maintaining your current property and expanding your investment portfolio, although it involves higher mortgage payments.Given your goal to minimize your ex’s financial benefit, selling your current home and purchasing a new house hack might be the most straightforward and financially advantageous route.

If your goal is to focus on minimal cost for this, that is when it might make more sense to do it as a purchase with a new mortgage. 

It's short and nobody I know regrets minimalizing, exploring and living a life free of regret.