Eliminate debt, establish a budget, and save.

You should refinance your long term debt into a DSCR loan and then do a heloc on your property.

Is having debt not reported on credit is your priority?

I would also put part of it in a debt fund. 

I think that losing the HELOC should create a little better cash flow but at the very least it will put some stability into my debt service. 

You or both of you might think you have a $1.3M home but in reality its a $975K debt!

Its still your debt, though, and it would now be the first mortgage and your new loan would be a second. 

That means they are paying dividends out of investor capital or debt, instead of NOI.

In my experience, cash flow is key, especially for long-term holds, so running a detailed DSCR (Debt Service Coverage Ratio) analysis might be a good step here.On the flip side, if you're eyeing faster returns, a flip might be more lucrative.

I was conflicted on DR's adamant position against leveraged debt, however, having a degree in finance and economics I believed I had well balanced approach.