Cash-Out Refi in Inherited Multi-Family

[Christopher Jones]

My family and I (5 Heirs) inherited a property in NY that was appraised in 2014 at $2.4M and only has a $106K mortgage, (equity = $2M+) which is up to date. 4 of the heirs, including myself, live in the property as well as my mother. We have a tenant that pays only $1800 per month, but are looking to increase the income by charging all heirs a monthly rental rate. We do not want to sell it and want to take out up to 35% equity ($840K) to pay off mortgage & estate tax, renovate, pocket $10K each, create an emergency fund, place up to 2 years of mortgage payments in escrow, and invest in flip and holds in Atlanta, Ga. Which type of loan should we take out? (HELOC, HEL, Private, or some form of creative financing) All suggestions are welcome.