End up with all cash and little to no tax.Your wealth snowball ends up a lot larger 10 years down the road when you make and keep your money in a more tax efficient way.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

If you did sell I would 1031 into something larger but you'd have to see if it'd beat your current property. 

House hacking involves partnering with a partner or co-investor to manage property, while real estate syndications involve pooling $35,000 with other investors to buy larger properties.

If you know what you want to do with the cash and have an immediate need for a larger amount, I'd recommend a cash out refi over a line of credit.

@Kristin Boekhoff I generally buy larger multifamily properties, so I don't have any personal recommendations, but I did check with my insurance broker. 

An investor looking for liquidity may value a REIT.

Also, it helps if the deal has good returns, which might be questionable at this point, although I know nothing about the market or the property you are investing in.Bottom line is that if the deal works, I would recommend that you go in with a partner or under someone that has experience doing larger deals and potentially syndications.  

By comparison, liquidation of these properties today would yield a slight loss.

Since the interest rate is already high, adding to it won’t drastically change your overall costs and will free up the liquidity you need for the new investment without affecting the low-rate financing on your multifamily property.Using the hard money loan to close on the new property could work well, especially if the property generates the $6,000/month you expect.