Metrics like Cash-on-cash return, ROI, NOI, Net Worth, Loan-to-Value.... these things change every month, every year. 

Value Add.

Because if they held on to their properties, they would be almost 2/3 of the way done with their mortgage and values have bounced back and likely exceed in most parts of the country.

Can someone provide me with some financing ideas other than the two that I just mentioned that would enable the other heir to receive cash from their portion of the equity based on its current assessed value and allow me to take ownership of the home, subsequently remodel it, and rent it?

Invest where you live is best.Get  a great Agent Get a great Contractor Get a Mentor to make it happen Phoenix area doubles in value every 4 years.

I bought it for $150k below appraised value. 3.

How did you add value to the deal?

Even during a 5 year holding period a properties value can double increasing equity substantially.  

It depends on what the list price is relative to the fair market value, how much competition there is and what the numbers look like. 

I calculate their “safe/fire sale value” at $3.86 mil.