What would you do? Inheriting small portfolio...

[Mark N.]

Hello everyone,

My name is Mark and I am a life-long Chicagoan. I come from a financial industry background, but am new to real estate investing and would like to start to get more involved in the industry. This post is the first step in my journey. 

I'm in a position to inherit a small "portfolio" of rental/investment properties. I use the term, portfolio, loosely. My relatives own several single-family and multi-family properties in the city (Chicago) - they are not incorporated; they own them as individuals. These properties were accumulated over several decades and they are paid off, so effectively 100% equity. 

My goal would be to continue to try to expand the portfolio by purchasing additional ones. My questions are: 

1) Should I put them in a holding company/LLC?

2) What is the best way to leverage this equity?

a) one forum mentioned Home Equity Loans, but another suggests Cash-out Refi? 

b) Are both possible in Illinois? 

c) Are there any other suggestions?

For the experienced investors: what would do in this situation? Any feedback or suggestions would be greatly appreciated. 

Thank  you,

Mark