Only you can determine this.

Sure  you can cash out, but what happens when a bubble is determined, like the housing & stock markets, it's value will crash and crash hard.

Determine if the area can support new construction.

The “I helped the seller by a sub to purchase” and the “you screwed the seller by a sub to purchase” are both correct AND incorrect.Because it depends on whether the seller was provided with a full disclosure of the ramifications and possible consequences of entering into a sub to transaction; whether the seller is mentally competent to understand the ramifications and consequences, and whether the transaction is accomplished without lying to the lender.

Given how the housing authority does their rent price determination on individual units, and government ran programs are never beacons of efficient processes, it can go either way.Note, the examples I speak of only relate to C-Class and below areas.

You will also need to determine how much you want to raise.

This is a house that I’d tell others to run from, but since we already own it we’re just trying to determine best options.  

.- Value add - When building additional units, what steps should be taken to determine how many can be built?

Price needs to be fair but how your clients are treated and the service will determine your success.

I tell my clients to determine how much they have in personal assets - if they have more than $500K in personal assets, I always recommend an additional $1M umbrella.