What should I do with $2M in equity? Sell?

[Chris Hill]

I'd love some advice.  I purchased 14 townhomes eight years ago for $120K each, and they are now all worth $350K.   Total value is $4.9M, and I owe $1.6M.   My goal is monthly cash flow.  I'm about roughly $11k right now, but my goal is 30K.  Here are a few thoughts I've considered, but I am sure someone with more experience might have better suggestions.  

1.  Sell 6 of them - Ideally I want to hang onto the 8 newest ones, so I'm considering selling 6.   Rough numbers, I could sell for $2M, and I owe 400k on those six, so I would net 1.6 (I know I'm excluding some costs).  I've invested in Ashcroft syndications and I like that a lot.  The cash flow of those 6 today is about 6k.  If I were to put 1.6 into ashcroft at 9%, its $12K a month, double.  That diversifies me a bit more, local rentals, syndications.  I'd probably split the syndications amongst a few operators.  (Suggestions?)  I cant 1031 into ashcroft so would it be worth it to eat the capital gains?

2.  Cash out refi - I looked at these numbers if I did refi on all 14.  I could get 1.9 in cash, but the payment on the current loan plus the cash is $18K so not ideal.

I manage the 14 properties, which is easy as they are newer, but eventually I want to be more passive. 

In summary, my main question is what would you do with the equity?  My market could drop and I would miss out on those gains.  All you experienced folks, what would you do in this situation?  Happy to provide any details i missed.