I would think with the HELOC, I could run with that until I can do a refi and with the interest rates starting to come down, there should be some gains to be made and I can repay the HELOC in short term. 

I recommend having an attorney draft one that can be short.

The biggest difference here is that you'll pay P+I on the entire loan amount immediately with a cash out, but you'll only pay interest on what you draw on the HELOC during your draw period.

I would generally rent to them even if they are a little bit short on rent to income. 

Given that the lease agreement had a 30 day notice period clause, I asked when the tenant was going to move out.

Here's my take on the decision:First, let’s look at the pros and cons of paying off your current short-term rental (STR):Paying Off Your STRPros:-You Eliminates your largest fixed expense (the mortgage), which increases your cash flow significantly.

My specialty as an example is working with investors looking to build portfolios of Short Term Rental/ luxury vacation properties all across the US.  90% of my clients use the 10% down second home occupancy loan.  

I bought about 65 homes over that two year period.. did very well.. 

Ultimately, a “win-win” keeps your tenant profitable while ensuring you’re not underpricing your asset.As for notice periods, definitely check your local regs, from what I’ve heard.

As an agent that works with OOS investors frequently I prefer they come into town at least during the inspection period.