@Bryan HartlenManaging low-end properties can be demanding due to higher tenant turnover, increased maintenance needs, and frequent rent collection issues.

And fall in equities will only exacerbate this trend - along with continued on-shoring / pro-growth trends the current administration is pushing.  

If it's turn key and rented you would analyze current rents vs expenses.

Use the 20K as a down payment on the next house hack and don't touch your current properties equity.

There are also several funds out there that provide high single digit yields that are low risk. 

Quote from @Jaycee Greene: Assuming you pay asking price, I'd estimate the down payment for something like that using a hard money loan (HML) would be around 40% of the purchase price and your monthly payment would be $2,600 with an interest rate in the low 7% range (probably need a 700+ credit score to get that).

This is pretty clean.Scenario 2:  Your partner has owned the house for 15 years and has been taking accelerated depreciation, so the book value of the house is very low. 

Thanks to everything I’ve learned from the podcasts, books, and this community, my wife and I currently own:A triplex in MaineA single-family rental in San AntonioA single-family primary residence in Las Cruces, NM, which will become a rental when we move in a few monthsFor context, I'm an active-duty Army officer with about 12 years left until retirement, and my wife works for a university in Boston.

I think the current zoning and your proposed use as it is zoned should help. 

If my spouse wasn’t opposed to moving I would try to buy a new house hack every 12-15 months and use low down payment owner occupied loans for as long as it made sense.