You also need to understand the source of the money problem to know it is temporary and recoverable.

I don't think what he was saying is that they are artificially lowering the price temporary to drive competition out. i think what he's saying is the industry is heading towards a flat fee instead of % base fee structure. 

We'd love to extend another year but having done that once, we don't think they will entertain it.We both have online access to our paychecks for our primary positions and can give a prospective lender temporary access to verify both employment and income for themselves, above just viewing paystubs we scan/fax.

Maybe I’ve been fortunate but I haven’t noticed much physical, emotional, or financial demand from that rental.

Unless there’s some emotional attachment to the house which prevents you from selling, get a realtor to estimate the value of selling as is and also ask their opinion on maximizing return.

A landlord needs to stay emotionally detached and just stick to the facts. 

Not going to be easy to let go of, but can't let an emotional attachment get in the way of our end goal. 

I understand that as an investor you shouldn’t have to stretch your options to make an investment work, however  my family would use this some for personal use as well, so clearly there is a partial emotional attachment ;)Any ideas are welcomed and appreciated!

That rules out using most of the BP lenders.After pondering this issue a bit I started wondering if the approach should be a temporary use of creative financing.

I don’t usually let my emotions make decisions, but I’d been on the fence for a while about giving her notice to move out so I could either 1031 the property, move back into it as my primary residence, or convert it to a by the room rental for a better return.