An alternate viewpoint is that the group is closing so many deals because they have an edge in a competitive market.

Each has their own tax implications.There are some alternative methods of calculating how much of the distribution and therefore the interest expense falls under this category, but the bottom line is that it is very important to keep track of. 

Like you said, probably not so easy here in MA but you did give me an idea about alternative uses...I typically focus on properties that I can make buildable by solving zoning issues, access issues or minor wetland issues.  

Alternatively, I have spent the last decade doing technical work in cybersecurity, and can land a job between $140k-$190k (depending on where in the US). 

Over time, I’ve accumulated more cash reserves and don’t need as much flexibility, but I’m actually in the middle of a refinance right now using an interest-only mortgage—because the pricing with the lender and the corresponding ARM is more favorable than a comparable principal-and-interest loan.The key with these alternative or "exotic" mortgage types is that you need to be financially savvy and have a solid plan.

So, you're actually making the argument *against* debt (not for it).I think you mis-understand debt, risk and the alternatives.

That said, I'm grateful for the alternatives you present--you're keeping the bottom line in mind, so I appreciate your help in exploring options that achieve the bottom line for the investors. 

Or of any alternative strategies to make this work?

I’m also open to alternative strategies, such as private lending or passive investments in funds, to diversify and balance risk.Does this phased approach seem reasonable given the higher HELOC rate?

Alternatively, yes you could sell, pay taxes on the gain, and use the proceeds to help your mom directly.Would suggest for you to talk to a CPA and a 1031 specialist to confirm your best move!