Buyout co-owner with a cash out refi House hack primary/rental.

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What are your thoughts on this? If 2 co-owners own a property with no current mortgage and   approximately 218k market value currently, and if one were to cash out refi with a private lender at approximately 97.5k (around 44-45% of total value) to buyout the other co-owner so there is one exclusive sole owner. There is a guest quarters(which is 1bd 1bath) and a 3bd 2bath home on an acre. Contemplating on living in the guest quarters and renting out the 3bd 2bath so one can continue to manage the property. A year or so ago I heard advice on house hacking strategies and so far without including the cashout refi monthly mortgage expense (because no co-owner has cashed out yet so it is not yet applicable) renting to tenants with one co owner being a primary resident to manage the property has been positive cash flow after taxes, expenses, cap ex, repairs, vacancy, ect. Similar properties in the area have been ranging from around 200k to a few in the 300k range after rehabs/renovations on most of the higher valued homes. Eventually after cash out refi one would rehab/renovate the 218k home and sell after renting to the current tenants for awhile, also having payed down the refi mortgage to make a rehab possible. Any advice on cash out refi's to buy out co owners, pros and cons? Any CPA's out there that would have any tax advice to having both "owner occupied primary residence" and "rental residence" on same property. (Ex: I would assume it would be taxed differently 25%primary with 75%rental ratio if there is 4 rooms). Some unique and interesting questions I really appreciate any advice and tips. Thank you everyone on Bigger Pockets!