They also want a priority lien on the property.It sounds like you are looking for someone to fund your down payment, I would be looking for an equity partner over debt as nobody likes to lend money in insecure positions, especially when a borrower lacks skin in the game.How much are you planning to come in with yourself?

We just completed 6-unit one bed one bath apartment in midtown Sacramento, CA As we are considering doing MTR, your feedback on how to move forward with this plan is appreciated  

I'll share first: I plan on spending the first bit of the year saving for my next deal--I'm looking for a SFH somewhere in the midwest to long-term rent.

If your properties are highly appreciated I would be cautious about selling them without doing any tax planning.

I am planning to pass on the cost to them both 50/50 since i dont know who flipped the switch, what do you think? 

I plan to leave them enough that they can afford to buy a house or start a nest egg, but I am not leaving large sums to them.

That is our Bible or road plans for repositioning value plays in good hard working blue Collar areas of Ohio.  

I'm actually impressed by that although I don't plan to invest in the Midwest anymore. 

You are procrastinating on the smallest of things which means you may lack the confidence to do what you are planning to do.

If you are planning on living there (ie in 1 unit) then you are house-hacking and this is a different calculation consideration then renting out both units and making it a true investment.