Financing options do exist: hard money loans, renovation loans, and some traditional mortgages can be used on distressed properties if criteria are met.

There's zero reason to do this when there are plenty of options to avoid it. 

@Chris Mason thanks for the info regarding the loan options for ADUs.

My two partners are willing to pay their share, but they’ve also offered me the option to take over the property completely since the loan is in my name.Here’s my dilemma: If I keep the property and rent it out, I could get around $2,300 in rent, but my mortgage is $3,300 at a 7% interest rate.

A 1031 exchange into multiple industrial properties, a mix of asset types, or even a REIT investment could spread risk while keeping you exposed to real estate.Hope this helps—sounds like you’re in a strong position with good options either way!

Another great option is the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat), where you buy a fixer-upper, renovate it, rent it out, and refinance to pull your cash back for the next deal, and this is a good route because most private lenders can go higher LTV than on a rental loan! 

I also worked with a great lender who helped navigate financing options, including my HELOC, to make the deal happen.

@Jerry Chilimidos,Here is a list of lenders who specialize in lending to IRAs and 401Ks:https://www.biggerpockets.com/member-blogs/2810/50272-list-o...I don't know where your rentals are located and how they are performing but selling might be an option vs doing cash-out refi.I would certainly consider option C.

@Kwanza Price - Syndications are a great options and even some QOZs. 

I'm an investor and mortgage broker and have options for loans that go as low as $75,000 and down payments as low as 15%, which makes it easier to stay above $75,000.