Best loans for improvement expenses?

[Michael A.]

Hello,

First time asking a question here, inexperienced here so bare with me, here it goes: I am managing 20 unit multi family in Los Angeles that my parents and I own. Its an older building and there are some relatively big system upgrades / repairs needed.  Specifically electrical panel upgrades and plumbing issues that need to be addressed. The total cost is $55k - $60K. My question is: If borrowing is feasible option, what is the best way to go about this?

A bit of background info:

For the last couple years I've been renovating units with the cash flow from rents. I've also had to dip into savings a few times. The units are small one bedrooms and studios, but the building is old and often the improvements are fairly extensive: New drywall, flooring, ceiling. Repipe to copper plumbing. Rewire electric and install recessed lighting. New vinyl flooring, kitchen cabinets, appliances. New doors and windows, etc...  

I would like to continue with renovating the units as there is turnover, however, there isn't enough cash flow to cover expenses, individual unit renovations, as well as the bigger improvements mentioned above.  And I also don't want to keep dipping into parent's savings. 

Some Financial info:

This 20 unit property is paid off and has no debt against it. My last in depth appraisal is a few years old but it's value was about $3.8m. Since then I've done some considerable improvements but I actually don't know the exact current value. 

We own two other income properties, both debt free.  

The only debt my parents have is a home equity against their residence. That property is $1.6m but the equity line is for $440,000.  

My first thought was to borrow more against their residence since, from what I understand, that will be the lowest interest rate. Is that correct?  Any thoughts?    

Sorry for the lengthy post.