I wanted to be able to put in some sweat equity and learn some of the skills needed in this trade.

At first blush it looks like you're finance at $500k, so getting a loan for $375k.

House hacking is an excellent strategy, especially with the potential to use an FHA loan to secure a property with a low down payment. 

I was told by Wagner that the builder is trying to refinance the construction loan as the cost of construction has increased. 

What really matters is how long you think you will have this loan. 

You have used home equity lines of credit to purchase investment rentals and want to know the best way to pay down the HELOCs.Between the two properties you bought, after expenses, you have $250 a month positive cashflow to use.What I like to do is pay down some principal every month with my positive cashflow.I use my extra active income from real estate commissions helping other investors to pay down the principal even more which just frees up that credit for me to use again.I know I can refinance the HELOC debt before it changes to principal and interest as it is just interest only payments as yours are.One difference is the cashflow, I have greater positive cashflow and could make the principal and interest payment in the future with the extra cashflow I already enjoy.I always get HELOCs on my income properties as well after purchasing them to pull out as much of my downpayment as possible.

So, your focus may need to pivot from high rental cash flow to little to no cash flow as a rental with an appreciation upside.I would recommend taking your $150K to $200K and securing a solid equity position in something that will cover its expenses and maybe provide a small cash flow, but then is poised to appreciate nicely over the course of the next several years. 

Sell your car and get a loan on a new car.

.🔹 Creative Financing – Traditional loans don’t always work for distressed properties.

You have a bigger loan, but not a bigger tax basis.