We want to pull the equity out of this property so that it can work harder for us and also have a substantial amount of cash saved up, in total over $200K cash to invest. 

We have no substantial capital to bring to the table and are not willing to move in order to house hack since we have 3 kids. 

I am also retired, so I think I can relate to your situation.I gather you have a substantial amount of cash to invest.  

This is a historic house, so that number may be too substantial for this scenario making this a bad deal.

This also influences market value.

If the first lien is substantial and the tenant is not performing (a safe assumption in light of the eviction attempt) then your second lien is just not worth very much regardless of what is stated on the face as to amount owing and interest rate.   

Also, keep in mind that although electric baseboard is more expensive per BTU, occupants may turn down the bedrooms or other rooms not in use during the day, (except bathrooms and kitchen) thereby saving substantially over a furnace/boiler.

Given the likelihood of a substantial market downturn when the federal reserve stops funding the economy it may make sense to wait and buy both rental properties in 2021. 

That said, I was scrolling Instagram last night, and a “influencer” I follow was asked the following:“How would you invest $1M at age 25?”

That’s one of the items people look at, but comps (if available), NOI, CoC return, all have far greater influence over the value someone will pay.