High ceiling looks great but increases your utility bill.

Quote from @Fernando Martin-Gullans: Hey y’all, I’m a retail investor with 2 SFH rentals worth a combined ~$650k looking to utilize some of my stored equity to buy more out-of-state properties, but I’m not quite sure how best to proceed given that my interest rates are incredibly low (leaning me away from refinancing) and neither property is owner-occupied (which I believe prevents me from using a HELOC).

You're marking the equities to most recent returns, the reality is a real estate investment to live in is a guaranteed rate of return and serves utility. 

@Matthew Drouin had a great reply:"Typically 50% of revenue is going to go right to operating expenses on small multi family. 

We have regular evictions at this scale and they typically will take a few months up to six or seven months if the tenant contest/hires an attorney.

While I don’t typically work with real estate agents to find deals, I do collaborate with other professionals throughout the process.

There are still a lot of deals that are anywhere from 120-180k and multifamily typically starts around 200-250k.

2: Could all the funds be better utilized in another deal based on the numbers you are seeing in your market?

It's good in that they don't have a lot of sale pitch, typical none in general meetings but ccasionally they bring in people with programs.

To minimize capital gains tax on the sale of their primary residence, your in-laws can utilize the $500,000 capital gains exclusion, potentially explore an installment sale to spread tax liability over several years, or consider converting the property into a rental to use a 1031 exchange for tax deferral eventually.