If the latter, simply give her the notice required (eg 30 or 60 days) that she needs to move. 

@Kyle Trotman If you purchased with a hard money loan conventional lenders will require extensive seasoning to utilize the new appraised value for cash out. 

I have focused my research on house hacking due to the lower upfront capital requirements with an FHA loan.

These are all important considerations, and understanding the requirements can save a lot of headaches down the road.

It is also important to consider the transactional fees associated with originating the HELOC, whether an appraisal is required etc.

Also, keep in mind that an IN multi member LLC would require a separate tax return, so you would want to budget for extra admin fees.

There is still money down required but helps ease costs

I think a HELOC requires a certain LTV before you can pull any equity and 1 year most likely won't be long enough for any real equity to build.I would say.

When it becomes exploitative as it has with China, it's bad and defensive actions are required.

Multi-family properties many times provide a better return per square foot than single family, which would be to your advantage as well.As long as you're mindful of the reinvestment requirements and purchase at least as much as you sold and use all of the proceeds, you shouldn't have any issues with this strategy.