On one hand I want to suggest looking into opening a HELOC on your current home rather than selling, this will give you access to some capital for your down payment funds on your next purchase and not require you to move into a rental for a short amount of time as you transition (something i'm guessing wouldn't be extremely fun especially with a little one either on the way or just arrived).Once you have adequate down payment funds, you could simply watch for the right thing to come along from the comfort of your own home.

Building now will raise the value of my house--I may not be able to refinance it on a fixed income in a few, short years.

I'm an agent, I do some work with investors in the Short Term Rental market, my boyfriend has an Airbnb that we have professionally managed, and I have a decent working knowledge of the local (ever changing) rules.  

@Bill Hampton I appreciate the heads up, I will contact you here shortly!

I am leaning toward just starting fresh on Dec 1 and keeping them on a short lease (i.e. start the eviction as soon as I legally can on day 5 rather than waiting until my customary day 10.) 

I want short-term money, 6 months max, loan amt $50K, with property as collateral.

Meaning -- Can I structure this to where the buyer gives the seller a downpayment and the seller carries the remaining note for a short time -- with monthly payments to seller -- while the buyer finishes the remodel to their cosmetic liking... after which the buyer can get a traditional loan and pay off the seller in full? 

My personal home has appreciated by roughly 50% since I bought here in 2011 as well.The area is a hotbed for short term rentals as well with all of the vacation property along the beaches should you like to try your hand at that.  

We actually reached out to a few "local" banks that have presence in the area and all of them either had a very short amortization period (10-15 yrs) or had a high personal guarantee threshold (60%+ of ownership) which would have resulted in asking my investors to personally guarantee the loan (big no for us). 

I have recently closed a deal on a 4-bedroom ( 4 en-suite bedrooms) house in King City, Ontario (This is my primary residence) and I am interested in reducing some of mortgage payments through short-term rental.