I would keep as much liquid as possible and essentially get you to 20% equity or more by renovating the property. 

Some ideas I've considered:Equity Buyout: Having another investor or my partner buy out my 40% equity.Seller Financing: Selling my equity and offering seller financing to the buyer.Selling the Property: Liquidating the property entirely and splitting the proceeds.Does anyone have experience with situations like this?

The main house is original (this place was built in 1924, very cool) and we rent it for $1,650/month.

Here is one piece of advice When looking at areas to invest in check out this website https://www.areavibes.com/ its pretty cool it gives you a total livability score and rating for that areaBest of luck!

The asset was sold a couple years later and the operator gave all investors the option to exchange into a new acquisition or liquidate.

Together we owned 330 units in Chattanooga (before it was cool) and did extremely well there.

Proof of funds would be a bank statement or some other document indicating the liquidity you have.

Each DSCR loan is separate and qualifies separately, so one doesn't necessarily affect the other except for the liquidity needed to close since you'll have multiple down payments/closing costs for each transaction.

Liquidated DamagesIf the Subcontractor fails to complete the work by the agreed completion date, liquidated damages of $[Insert Amount] per day will apply.

Liquidity is important if this is money you plan to put to work in the near term.