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. 

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

Is having debt not reported on credit is your priority?

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

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

In your example sell the $2 mil building (assume there's $600K of debt remaining so there are 1.4 mil in proceeds). 

Other equally contributing factors you want to consider is the properties positive cashflow, asset appreciation over time, debt service paydown over time, as well as hedging your dollars against inflation - all of which make real estate such a great investment especially when you have the right property!

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.

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

I am hoping to roll these two into one loan and reduce my monthly payment/ interest rate on the HELOC as I will be having the debt long term.I also currently own a 11 spot RV Park which I own all 11 units and is currently generating $10,375/month in rent.