It seems like each option could work depending on your long-term goals for those assets.

You will have enough for a small downpayment on each option, depending on the area chosen in each case, and you won't have much of a cushion after closing costs. 

Just withdraw it—it’s like a checking account.The Risks (Depends Who You Ask):A lawyer says everything can go wrong.An insurance agent says the same (so they can charge more).An engineer?

I know some STR designers offer Minoan for their clients and others don't, so it depends on who you choose to work with.  

@Mohit Gupta  depending on number of occupants your regular insurance can cover it, read the policy, ours covers two roomers. 

Note this can be pro or a con depending on your strategy.

It depends on the type of lender, the broker is using.If a broker is using a wholesale lender, they make their money on the back end side.

If you keep it as an investment property, a lot may depend on your location and condition.

Great idea(s) depending on your market. 

For multifamily properties, this is often around 40-50%, but it can vary depending on the property's condition, location, and age.- Analyze Comparable Properties: If you’re working in a specific market, reach out to other landlords or property managers with similar assets.