So, I want to do this deal, but I am concerned about how to structure our agreement. 

But I haven't seen many, just few different methods, e.g. four or max five.

The valuation methods are:  Actual Cash Value, Functional Replacement Cost , Replacement Cost .

The next one is April 9th.If you still have no takers after you've tried to sell them via the above methods, then you definitely have a price problem, because there is no shortage of buyers for the type of properties you are describing.

@Lucas LeBlanc the municipality  regulations were my exact concerns.

I do my own estimate based on J Scott’s method, along with having my GC walk the property with me.  

The properties are owned by our LLC.Assuming nothing changes from the current tax perspective, what is the "smartest" tax-efficient method of getting this equity out of our investments:1) Cash out refi $1.6m (80% LTV of all the assets) and invest that money in a more liquid (albeit lower return) investment vehicle?

I don’t have as much concern with someone who was late on some loan payments, realized it, fixed it - and was upfront about it.

As far as the information you have provided is concerned if you get 1K in rent and expenses are 50%, which is typical on a SFH, that leaves $500 to provide a return on your investment. 

I currently do the majority of the advertising, but that will change once I figure out the best methods.