Quote from @Ben Fernandez: Gotcha...I like your goals utilizing the lease option.

I've been thinking about ADUs as well, so I will keep that as an option.

Loads of information on the forums and BP tools for you to expand your knowledge or find just about anything.I am on the lending side of things and am always happy to talk shop with investors looking to learn more about financing options out there, even if not in my resource pool.  

We have full time professional jobs and children so getting into heavy rehab or flipping is not an option.

Transportation options are plentiful.

Some will do but they tend to be far and few in between and the terms are not very desirable at all.Another options is to take down the properties with a bridge loan. 

Depending on your new job as a 1099/self employed, there are likely other loan options available that can work.

But I know that the leaders are working on plans to fix it and they are very skilled and effective.

With that being said you do have lots of options.

If you are looking to pull more cash out I'd go with the second option.