If you do then most certainly do a 1031 exchange into another winner of a property or even better do a cash out refi, provided that the debt load is sufficiently covered by the cash flow from the rental.

FHA 3-4 units has a self-sufficiency test which can be difficult to pass in higher priced markets where the rent from the other units needs to be greater than or equal to your total housing payment. 

check out Puget Island  Cathlamet  River frontage  no hotels to compete with very few STR and only 90 miles to PDXprice points lower there is a cute A frame with 100 ft of river frontage and a dock into the columbia on the market now for 615k  3 bd 2 ba upgradedwill sleep 8 easy and will bring 300 plus a night.. with literally zero competition .  301 W sunnysands  check it out. 

The plan is that the space between the sleeping area and another living area will have a closet with bi-fold doors.  

So look around, interview other STR owners so that you have sufficient information.

Hi Rob,If you believe the HELOC will be sufficient for the purchase & rehab, it could make sense to use the HELOC given the interest rate is lower than a hard money. 

As long expectations are managed, either route should be sufficient. 

I have never tried that method but I would assume that the sheer amount of effort required to call enough people at random to generate a sufficient number of actual leads would be pretty astronomical.  

I have very low turnovers and sleep like a baby by being a little lenient here and there.

If I give her a move-out notice with 3-4 weeks in advance, would it be sufficient?