Having to buy another primary residence, to avoid tax on the gain of your current home, has not been a requirement for over 20 years.Assuming it was your primary residence from the beginning, and you have not moved out/rented it for more than 3 years, you gain is exempt up to $250k filing single and $500k married/filing jointly.

I'm working with the City of Kansas City on determining the highest and best use, which will hopefully lead to building 1-3 new multi-family structures (ideally duplex, triplex, or quadplex).

You might be able to find a local handyman or painting company that has someone on their staff who is really good at blending things in.If you're looking for a first class repair, someone like that is as good as gold.Good Luck!

Also, any tips on how to respond without sounding snarky?

But a lender will only go so far on the risk spectrum in exchange for a 4% to 6% return.  

Would love to hear your thoughts on this scenario. 

As you get closer to the Twin Cities the numbers change depending on the area.

We found this deal on Craigslist and made payment to the owner How did you finance this deal?

Congrats on your first investment property!

Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.2.