HELOCs typically do not go above 75-80% of value and since the property was purchased recently they would not see that equity unless you did some major rehab to the property.

As an aside, insurance companies are inspecting most properties one way or another in the current market. 

Another thing to add is the regulations, HOAs and Cities are imposing a lot of regulation on short-term rentals or rent by a room, I have seen some HOAs regulate the amount of people authorized to rent the property too.It requires to do a lot of due dilligence to begin with mainly in such big house. 

I have one property that is a 4plex in Carson City, NV.

We have a mixed use apartment/commercial property for sale where the owner would entertain seller financing.

To minimize taxes, consider the following strategies:1031 Exchange Before Dissolution – The corporation could complete a like-kind exchange, allowing investors to roll their ownership into individual properties while deferring capital gains tax.

Be careful when you start thinking other sales will equate to the same numbers for your property. 

Why not save more money and look at higher value properties?

As you alluded to, sometimes a passive note investment purchased for monthly payments “goes south”, and becomes an active participation investment, with plenty of additional capital required for legal fees, forced place insurance, and property taxes.  

Today after making improvements to the properties it generates over $2,300 per month in cash flow.