We wanted to grow a garden and a few animals for consumption. 

What do you think is our best option to sell and split the proceeds and eat the capital gains because my mom passed 10 years ago there is going to be some significant gains there. or fix up and rent. or sell and carrier the paper because it is free and clear. 

Of course, you have to eat, cover transportation costs, and keep a roof over your head as well.  

@Sisee AdamsIf her pet is biting people, you can give her a cure or quit notice to remove the animal and evict her if she refuses.If she does not have renters insurance in violation of the lease you can give her a cure or quit notice now and evict her if she fails to get insurance.Some jurisdictions have made it illegal to tie up (tether) pets outside.

Again, someone would have to win a settlement so big that it would eat up your standard liability coverage and then go to the umbrella policy.

Would we theoretically be able to refi a second time, this time as an investment property, and eat any out of pocket cost?

I don't prefer to have animals in the home as it has brand new carpet.My first thought is to deny the tenant due to the size and breed of dog, however should I consider the option of a large pet deposit and pet rent.

Anything with a HOA or condo fees will eat into your costs.As for buying less expensive homes, there is a balance between quantity and quality.

This amount would easily cover my expenses for my family of three while I continue to live overseas and take advantage of low cost of living or come home if I like.It feels like having my cake and eating it too, as I could potentially have a cashflowing asset, with renters building equity for me while also increasing my net worth.

Going to eat and visiting new places brings me so much joy, and parks so let me know!