PS: I will supplement any information that will help devise a solution :-)Michael

Although the difference is still great ($900), at least I know what to aim for now.Thanks  everyone.

Your goals can range from full time investing to some passive income streams to supplement your W2 income.   3) Determine the type of investing you to narrow your focus and start the deep dive into that specific type of investing. 

Our thoughts are that she could transfer/gift them to me to take over and I would in turn split the cash flow with her to supplement her retirement income.

Same thing as above but you want to aim way higher than 8% for your cash on cash return. e.g. $100,000 distressed property. $40,000 rehab. $28,000 down payment (20%) for purchase and rehab loan.

Through strategic property selection, value-add improvements, secure financial practices, and creative financing, I aim to build a robust and profitable real estate portfolio.

Since you aim to refinance at 75% after having a renter, you will need to be all in (with repair cost) at $187.5k to $375k.

We aim to get them their cash back and refinance so we can keep the property.

However, IF your goal was just to make some money in Real Estate to better your position in life, or supplement your job income, then selling might make the most sense to give you a good savings cushion.  

Maybe have the UW and said LO have their Credit Vendor call that lender to do a credit supplement?