And then I would use trust deed and promissory note to get a loan with lower interest rate this is how all lenders work banks HML private money lenders if they are scaling.. 

I suspect you spoke to bank employees who weren’t in their commercial lending division and didn’t understand your borrowing request. 

The talk seems to be more as if these people invested in Bank Bonds, CD's or something.

I just had a bank tell me they would take a 40%+ discount on a $400k asset which six months ago they would have wanted a 10-15% discount.

The only way you can start skimming profits is when you have enough money in the bank to cover all emergency repairs which could be $15,000-$50,000.

I'm not sure if anyone knows anyone in Roanoke that would be willing to be the 2nd witness (we have one as he is visiting family) the bank and UPS said they cant use their employees to witness it. 

For example in many jurisdictions I can STR units in a duplex but cannot STR an ADU (some jurisdictions will let you STR if you owner occupy).

If I finance the rebuild then the 1031 exchange presents some challenges (I will need to land a property that cash flows or breakeven so that I can get the loan for my rebuild, or banks will count that debt against me).

Before you decide to pull the trigger with any Bank/Lender make sure the they are well versed in DSCR guide lines and close more than a couple a month. 

One would be when you have a primary home and its listed on MLS (for sale) and the bank gives you the cash out until the home sells and the loan is set up for 12 to 18 months.