Landlord laws was the main factor why I chose to invest out of state and have been happy with my decision to do so. 

Could be sooner permitting what comes on the market that would best suit us therefore this is where the HELOC would mainly help.

It can be multiple factors. 

That is $19,200 annual profit so you would be -$3,200 in 1 year with no factoring of breakage and maintenance.

Read the forums here, but even more importantly, listen to all the BP podcasts - the main RE one, Rookie, Money, and On the Market.

I'm trying to help a family member sell her house in Boothbay, Maine. 

Main thing to consider Id say is the occupancy limit on unrelated people living together.

What other factors should I be considering?

However, when you factor in the HELOC, we have a negative / break-even cash flow (HELOC payments are about 25% of the revenue from both).

@Nik Farooqui You are correct in that GC licensing is never a requirement but it is more of a "silent factor" that can make a lender more comfortable lending hard money and thus the approval and loan process easier.