Bought a 4 family for $36k, it's now worth ballpark $800k-$900k

[David Wrenn]

The owner bought the building 50 years ago or so because he originally paid $36k for it.  There' practically no comps for a 4 family in that area so myself and my friend(agent) comped it somewhere in the 800k's.  The property needs new windows, some kitchen and bath updates etc. The owner has dementia and occupies the basement unit.  My colleagues daughter lives on the second floor and takes care of him.  The other two units are occupied and under priced. First floor is paying $1,300/m and top floor is paying $1,700/m.  Rents should be closer to the $1,700-$1,900/m range

My colleague wants to move her family to NC, provide care for her father and also buy her daughter a home.  

The property was assessed at $625,800 in 2016 - taxes around $12,000/y.  I think it appraises much higher.  As is, the owner is rent rolling $2,000/m with just 2 units occupied and paying rent.

She wants to hold on to the property and make capital improvements over time.  The property is owned free and clear.

I told her if she wanted to hold on to it that she should get it appraised and could refi it or get a HELOC. She does not want to refi it for what ever reason. She said she would consider a HELOC. I've never used a HELOC before, it's my understanding that banks will lend on up to 70% of the appraised valueif it's owner occupied, and the owners credit? Is that correct and what other creative options would she have if she wants to hold onto the property but pull out a big chunk out for her families relocation?

Thanks!