You could ask your accountant about options for bonus depreciation or possibly updating the properties in order to receive depreciation deductions or write-offs for repairs, maintenance, etc. 

Or Roseburg area is an option. 

Places like Memphis, Little Rock, OKC or even Tulsa are great options.

Keep in mind there are 8,000 different lenders in the US...so, obviously we cannot speak for all of them...but the absolute best of the best lenders in this space, that have the most aggressive pricing, won't penalize you with 2 points for one option over the other.I would also question that IRS definition - that is not the case.  

There are so many caveats and unknowns here that this is just an attempt at an idea...Option 1, the four grandchildren living in the property buy out the other two:-Estimate your PITI payments based on the expected payout to the 2 grandchildren being bought out.

The sellers don’t want to return the earnest money, creating more problems.If anyone has experience with this, could you advise on legal options?

Someone mentioned Quickbooks, also another good option.

Having disparity among tenants is more likely to cause problems.I don't make changes to pet deposits or security deposits.

Another option if you both have self-directed IRAs is partnering them together. 

Solar energy is becoming a more popular option for homeowners, but it can be a costly investment that won't pay off when you come to sell.