Right now my monthly gross is right around $3500-$4000 but the lenders won't take into consideration that amount.

@Linda Weygant we talked about this. i think. he was wiling to do a bond for deed and even with the installments he pay taxes. i'm thinking along the lines of an agreement that will trigger in the future. also i heard that an individual can make money tax free after retirement age or 72. it that not true?

Make sure you get your financial affairs in order so when you find the right deal you can pull the trigger and close on it. 

Short example not trying to sound morbid here but i do get calls from 2 local funeral homes .Most do there own in house type financing but occasionally they do run across people that are land rich but don't have a pot to PXXX in , A little help , guidence , and volunteering to others can go a long ways in one day making a deal come together and putting you atop the consideration list when the time comes for the people to sell . 

I know transferring title via quit claim deed can trigger "due on sale" however my question is if that happened could you just quit claim the property back the way it was to settle the "due on sale" clause?

I'd like to sell my home and get something smaller, and then use the savings from the decreased mortgage to put towards investing, but that doesn't seem likely without a considerable loss.

Taking into consideration the resale value and the high cost involved in the complete gut job, materials, plumbing & materials cost I just decided to just do a quick and easy refresh on the bathroom. 

This bodes well should you decide to pull the trigger and cash out the equity.

Also, 24 hours AFTER you make the decision before you pull the trigger helps me also.

However, I feel I need to be more comfortable with the refinancing strategy before I pull the trigger.