As long as there's a path to doing it, we're ok if it's complicated.

In my experience, my lender hasn't given me a hard time as long as a unit is vacant or there is a month to month tenant.

As long as you don't think that debt service will interfere with their ability (or priority) to pay the rent, then I'd say go for it. 

Commissioner cited in Gates, it was ruled that a person can sell one's residence with part of the land, and subdivide out and sell another part of the land and include the gain from that subdivided land in the exclusion, as long as the subdivided land had also been used as the residence.

As long as you have more than 20% equity to appraised value, PMI goes away. 

Commissioner cited in Gates, it was ruled that a person can sell one's residence with part of the land, and subdivide out and sell another part of the land and include the gain from that subdivided land in the exclusion, as long as the subdivided land had also been used as the residence.

On the financial side, we have two goals:(1) build more equity, faster(2) not increase our monthly mortgage from what we currently pay (in other words, we are fine paying what we currently pay for our SFH, as long as the rental income covers the incremental mortgage) I would love to chat with you if you have been through a similar journey, or have thoughts on what to consider in making such a move.

Perhaps a bridge lender would be more inclined to finance as long as you had a strong business plan. 

I'm not opposed to giving up this old duplex, so long as I'm not making a financial mistake. 

I would probably tell them that I won't be renewing and I would offer them an early departure without penalty as long as they give me XX days notice in writing.