If you don't like long distance land lording then that kiboshes that.A refi if you reinvest the proceeds can greatly increase your cash on cash ROI. 

This causes my note to increase a few hundred dollars a month but will not have to put money down for closing and instead leave with cash in hand.

Generally, shipping containers are used as a way to expand an existing self storage facility with minimal capital outlay (the containers can be leased) and as a way to increase revenue without improving the property that would generate an increase in property taxes. 

I mean if you happen to have an extra $20,000.00 to play around with it might be worth gaining the experience if it can provide you with a new strategy for forced appreciation or increasing the expected rental income. 

With the location on the edge of an improving and re-developing downtown, does that increase the value of these proposed new homes despite the existing ones?

There are several different neighborhoods with varying rent prices and also varying year-to-year(YTY) rent increases.

Most likely she wants a two year lease to avoid a price increase, and is happy with where its listed at now. 

If you got a couple more quotes, it might really increase your cash flow. 

If you are going to rent the lot and buy the home you may find your expenses increase.

Will my property value increase?