It's not a long-term solution for a rental property...you would want to refi it if you are holding the asset, but having a HELOC does allow you to jump when you need to but keep it separate from your personal finances.

SOLUTION: Write a strong-worded letter to all your tenants and inform them of the noise policy and noise times while reiterating that the policy should be followed. 

I've had luck with Foremost and American Modern, but I think Foremost offers coverage that includes vandalism and also will prorate the expensive vacant insurance rate, no minimum, if you convert to a landlord policy once occupied.   

We stand to "save" about $75,000 in taxes from both the deferred capital gains taxes and the avoiding the increase in healthcare tax etc with our income pushed $350,000 higher for the tax year.I understand the easiest solution to my possible lender problem is to pay cash for the replacement property. 

My solution get a part-time w2, do a payment plan based on income after the year is up while paying interest on the student loans.

@Mario Alexandrou @Jaron Walling @Nick Giulioni Thanks for the insight, definitely feel like that makes sense to just renovate where you have a slight advantage over market but not going nuts with costs trying to make it beautifully modernized compared to the area. 

Is there a financing solution I am overlooking? 

I use American modern not because they are cheap but because they are too lazy to come out and inspect my properties forcing me to fix stuff !

Several of us are trying o find the right solution to make the sale easier and less litigious. 

@Dan MikloszHere are some good hints your lender is pretty good.They don't get too beat up on Biggerpockets.They never send you a copy of their driver's license.They don't charge points up frontThey tell you up front that you have to pay for an appraisal or BPO, but it goes to a real AMCThey speak in acronyms (LTV, ARV, DSCR, DTI, ARM), but can explain what each meansThey know the difference between an ARM and a Fixed rate loanThey aren't afraid to tell you no, but will offer a solution instead.Just a few off the top of my head.Stephanie