It's good for converting capital to cashflow but not multiplying it 10X in 10 years.With your skill set, entrepreneurial bent, networth, cash, credit and goals, active apartment investing makes the most sense.

Once satisfied, you can make the after-tax contribtuions and convert to Roth.

Cash flow (after you convert it from the useless % to actual $) is way too low to hold onto.

I've talked to one of the few lenders from a major bank that does vacant lot loans that then convert to a construction-perm loan, but he claims the rates are locked at ~20% down, 4-5% for 30 years (I can provide more details on specific terms). 

It will increase our monthly carrying cost if we do that.My husband thinks that this is like “cashing out” on the gain and converting it into cash flow each month, and still be able to keep the cash we originally wanted to invest with us to do something else.

Its a 3/1 and it has a large room addition in the back which could be converted to a 1/1 if I install a bathroom.

My CPA converted it to a $1200 repayment.

Or if there are garages, you could convert those to an ADU for much less.

Just to be clear, these are apartments that were converted specifically for this tenant, so it is not a commercial space that I may be able to easily rent if the tenant leaves.

You can convert them to rate bumps (if you don't want to pay out a ridiculous amount in fees/points) at a ratio of about 1 point equals 0.25% to rate (tacked onto the base owner occ rate on any given day -- rates change daily, sometimes 2-3 times a day, depending on Wall Street).