We are in a constricted market cycle, low volume, strained budgets, high costs.

If I weren’t selling an SEO product, it might have been perfectly acceptable to share these golden nuggets freely.

Let brokerage grow, tenants pay down mortgage, and save up for another property organically (Cons - slow growth, waisting equity// Pros - low risk)2) Cash out the $300k brokerage account, pay off the townhouse, start cash-flowing $2,400/mo, and save up for new investment or 1031 into multi family(Cons - cap gains tax on cash out, high Oregon income tax penalty, hard to find deals being $2,400 monthly cash flow) // Pros- cash flow, increased leverage into large investment)3) Cash out $300k brokerage and put into separate Multi Fam property, hoping for $2,400/mo+ cash flow, keep townhouse rented as is (Cons - cap gains tax on cash out, not utilizing equity PROs - increase portfolio value, higher upside with value add or rent increase on new units?)

You've done a great job with keeping your debt low so I have no concerns about your level of discipline to use/reuse a line of credit.All the best!

Conventional mortgage product? 

If you low-balled them, you have to be careful doing that when asking for seller financing.

Yes, it's true that you might be able to find a product you need at a greater discount when a brand like Wayfair or CB2 is having a sale, but I've found that they truly do offer superior discounts at scale, even considering the fee. 

The price point and low property tax rate allow you to build a portfolio that cash flows and contains 15%-20% equity.

This is pretty clean.Scenario 2:  Your partner has owned the house for 15 years and has been taking accelerated depreciation, so the book value of the house is very low. 

Option 3- If they have qualified for FHA; counter the offer to see if they can qualify for low downpayment conventional loan