The interest rate on a HELOC or Heloan may be better than the personal loan. 

You can try and fight it but does not mean you will be successfulI would also be curious to see what your property insurance looks likeFor me this is just another example that home prices are gonna eventually have to soften as between taxes, insurance and Interest rates home affordability is very challenging

Combine that with insurance raising rates not just for dropping licensee count, but also to cover increased lawsuit risks.

Although 3.1% is a great interest rate I tend to not get too caught up in keeping a property just because the rate is good.

What the investor will have is a long term appreciating asset; that will provide an increasing cash flow as rental rates increase, and steady amortization as the note is paid down.  

Increase the occupancy rate to 80% or higher over the next 12 monthsto increase the value.

The only other option that comes to mind is to make the improvements and try to achieve favorable rental rates to push the story that 2 BR homes rent for a premium because its unique.

There are many STRs that do quite well in the suburbs of major cityies Off the top of my head, I can think of one of the STRs we manage that is 40 mins outside of Dallas and it has a great occupancy rate.

This year is slower than normal because mortgage rates and home prices are so high.

Frequent hail storms pushing insurance rates up in that market.