After weighing our options, it seemed the best approach.

@Samuel Coronado I’ve worked with a few lending options that have no seasoning requirements and allow you to borrow based on the appraisal or after repair value irrespective of how long you’ve owned the property for.

We take your info and we let Lenders battle for the deal offering their best options.

Option 2: Sell them and split the proceeds.Considerations: - Immediate liquidity: I would have cash on hand for new rental or stock investments. - Eliminate mortgage obligation: Selling would relieve me of the mortgage. - Able to keep the retirement fund that was going to be used to buy out the equity

The last tip, I would also see about the first option above I mentioned and add in staging if you do not have it. 

I’m in the private lending space, so if you ever want to chat about financing options or need a second opinion on a deal, I’m happy to connect.

If this property is hard to rent, or is functionally obsolescent (only 1 bathroom, no yard, etc), or has deferred maintenance that will be costly, or is in a location that is not appealing to Tenants, then maybe a sale would be a good option in favor of a property that has better Tenant appeal, which will likely increase rent and avoid long vacancies in between Tenants.An option to consider....

I'm looking to identify a builder with the following characteristics:1) Eager to grow his/her company and reputation in the market2) Has produced at least five high quality builds in Arizona which are at least 4K sq ft  3) Has proven track record of completing builds in a timely manner4) Personal capital to allocate to projects (optional, but ideal)Please reach out to me if you or someone you know might fit these criteria. are you set that you want luxury?

This could be a great option for your property as well.I recently met an investor at a networking event who specializes exclusively in pad splits.

So this involves hiring an architect draw up plans ($1,000 - 3,000 if I had to guess).