If not you will need a very large hot water heater.

It's more difficult now to leverage strategies to take advantage of low down-payment owner-occupied conventional mortgages such as house-hacks, live-in flips, etc due to DTI requirements. 

The water heater blows up a week after closing guess who pays?

@Margarita Artiushenko knowing the numbers and understanding investing requires risk taking.

The water is not deep but it's a 5 foot drop down to it.

A house lift and new foundation is required and was quoted at ~170k plumbed & wired, but not finished.All that said, I appreciate you walking me through the numbers, I wasn't sure how to apply these equations to our situation.

This will be a requirement of this proposed settlement.  

You may have to send USPS certified or post on door stating rent increase beginning x date, mine usually includes an addendum extending lease term one year at x rate requiring signature.

We are considering taking out the required cash to make up that total from our savings, brokerage, and 2x TSP loans from our individual accounts.

Some sites require asbestos testing and/or possible environmental testing as well where demolition occurs.