You're missing one factor: That you can sell your property and probably not pay capital gains since you've lived in the property for 2 our of the last 5 years.I'd split, sell and take the money (or most of it) cap gains free.

Whether you’re looking to gain insights into financing strategies or want to discuss potential investment opportunities, I’m here to help you on your journey to becoming an investor yourself.Feel free to reach out if you want to chat or explore ways we can collaborate.

This person told me they were doing a lease option with the owner to gain ownership from paying the back taxes.

The article below is an informative summary of how a personal residence can be leveraged to lower the barrier of entry into real estate investment.https://www.businessinsider.com/live-in-flip-avoid-capital-g...

It won’t be passive so it all depends on perspective.

It's not quite a passive as the RE world makes it out to be (we self manage our own properties)... but it is a very nice lifestyle.  

You could do a selective cash out refinance on one property to give you tax free living cash.If you do sell you'll want to do a 1031 exchange if you can so that you can avoid tax on all of your gain. 

That being said, I'd suggest you start interviewing property managers and make this experience more passive for you.

Have you considered selling the home with seller financing/subject to as an alternative way to gain income/ unlock equity?

I use over the range microwaves in all my rentals; it's just one less appliance renters need to bring and gains huge real estate in small kitchens, and the microwaves are almost the same cost as the hoods any more.As for the countertops the spots that always get ruined are the areas exposed to moisture; the clear poly repels the moisture and binds the sawdust together in the particleboard.