Proceed with extreme caution.

The title co will distribute the sale proceeds to whomever is vested / owns the house. 

The final distribution was as follows:Net Proceeds from Sale $314,419 Account Balance Adjustments $18,822 (reserve funds, mortgage reserve, insurance refund, etc.)Total Funds Available for Distribution $333,241 Disposition Fee - .05% of Sale Price $(3,400)Return of Capital $(130,000)Tax and LP Dissolution Reserve $(15,000) (funds set aside to dissolve LP)Subtotal $184,841 Limited Partners Profit - 75% to Capital Contributors $138,630 Managing Partners Profit - 25% to Managing Lessons learned?

Third unit is an addition on back of house on own utilities.) which I pay for heat for those three units, they pay electric.So my question is, how should I proceed?

I’d refi and invest out of state with those proceeds.

I'm proceeding with my first large commercial project (building a new hotel) and working on finding investors/partners.Here's the deal:The all-in cost for the project is $4,000,000. 

*Shameless plug: Our recently sold a co-op and helped our client use the proceeds to purchase her first investment property. 

@Lina Bibikov let look at the numbers....Flip....You're all in at $75kWorth $129kSelling costs, figure 10% $13kProfit from the sale $41kTaxes fun the profit, 50%Net profit, $21kBRRRAll in $75kARV $129kRefinance @75% ARV, proceeds $96,500Tax free cash I your pocket, $21kSo In the end, both strategies put $21k in your pocket, but one you are left with nothing, and the other you have a rental property making you money.I know which way I would go....

If that amount is more than what you are asking, great... it will be allowed to proceed. 

In most cases those funds comes from the sellers proceeds, but not always.