I have a pretty large emergency fund in place for those properties, but I wonder if that capital could be better employed elsewhere (potentially acquire another property).  

With $150K, you’re in a strong position to acquire multiple properties, especially in affordable rental markets like Texas, Pennsylvania, Michigan, and Ohio.

What type of properties are you looking to acquire, SF, 2-4 MF, or 5+ MF?

What type of properties are you looking to acquire to build your portfolio, SF, 2-4 MF, or 5+ MF?

If the client is in CA the community property state laws may help here (not entirely sure) depending on when the property was acquired but it would be a great question for an attorney as Jason mentioned.If they were married and went through a divorce it would be worth looking into how the divorce paperwork stated how that property would be handled.

Obviously some cash flow is better than none but is that amount worth the work to acquire, manage, etc. on the property?

As you get to this point your gaining more confidence in the options because you know option A and B had a certain outcome that wasn't option C, and this would give you more confidence you're doing the right thing for you.From there, I would be identifying properties to acquire if you don't already have some in mind and then my next sheet is creating the plan.

I know a lot of investors do this, they acquire properties and then sell them under their terms, acting as a bank financing a purchase.

What type of properties are you looking to acquire, SF, 2-4 MF, or 5+ MF?

Quote from @Devin James: To those who consider themselves very wealthy, is wealth worth what is takes to acquire it?