Now I just have to decide whether to re-rent or sell but leaning sell due to my wife’s job situation.

It can be done, but it is far from an easy business.It sounds like you have a great family with REI background you can lean on for advice and support, they know you best and I am sure they are happy to work and brainstorm with you. 

Very convenient when they are busy. 

I would likely lean towards charging gas cost x1.2 and just add it to rent in this case.

It is more convenient for everyone if there is a lockbox there, but it is the owners right to make that decision.

I have the convenience of being literally a few steps away in the event of an emergency, not to mention the added bonus of being able to choose my neighbors. 

I am very much leaning that way, and telling this lender to pound sand. 

My strategies other than that include rental arbitrage which puts the liability in someone else’s hands, very lean service bases businesses and I’m looking at building rentals but only if they’re considerably less than acquisition. 

I know I can buy multiple properties for 250k in other states verses half a property here at home in Northern California and am leaning towards that.I am seeking advice on how I can maximize my income using my saved funds of 250k by investing in real estate.  

I've been leaning heavily towards doing a househack, but am not sure that we would be able to find an ideal situation for a family - living so close to our tenants/neighbors.