Where should I save my money?

The other consideration...are you exempt from the provision? 

My wife and I currently make more money than we did in our corporate careers but (legally) have not paid any federal income tax in several years. 

I believe we will continue to see this increase as more tech and energy jobs move into the area.There is a reason so much money is being pumped into the area.

Financial freedom requires:Your rental income must increase faster than inflation so you will have enough money to cover inflated costs in the future.

Strategies like REPS and short term rental loop hole can be complex and expensive to get wrong from a time and money perspective. 

Don't we think investing in the US is risky with high interest rates, historically low affordability and cash flows and high prices inflated by 15 years of artificially free money that's gone for good?

@Trey Campagna without knowing much about your situation I'd say the first thing to do is to use a VA loan to buy a primary residence with as little money down as possible and the lowest interest rate available.

Here's a few thoughts- On the math side you know you will take a 35% hit if you sell but how upside down will you be if you spend the money to finish the rehab?  

In the past 2 years, I have used my extra money to pay off student loans by interest rate.