I would highly consider house hacking if that's an option for you. 

They currently pay $1350/mo for the rental.Are there any creative options for making this work or something we're missing? 

Here are a few ideas that might help you navigate this situation:Explore Financing Options: While you've mentioned not being keen on a second mortgage, there might be other financing options available.

If you want to house hack, the best option in DFW right now is probably to buy 4-5 bedroom home and rent bedrooms. 

We typically pay $2,500.

He has a ton of units in and around Worcester and in similar areas and is licensed and able to help find off-market and on-market options where you want to look.

Disclaimer - I am not an CPA or attorney but I became financially free doing this for myself after 10 years working as a w2 engineer :( and I am sick and tired of seeing highly educated and hard working professionals getting stuck in the rat race because we deserve financial freedom and the option to do more with it.If you are able to implement a real estate professional status tax strategy (REP) you can use passive losses from syndication deals to lower your ordinary W2 income.

If you are interested in a market like KC there are some good options for you here.

This is not intended to be a discussion about the options for investment, rather how to conduct real estate settlements in non fiat currency.It is (or should be) evident by now that the status of the USD as the world's reserve currency (or at least our exorbitant privilege) will continue to be marginalized in the coming years (and decades) and that investors are factoring in elevated risks of currency inflation and debasement into and onto their portfolios. 

However, condos are typically cheaper and you could find more options if you have a limit to what you can spend.