Then when it makes sense, pull money out or 1031 into something new.

You can also explore FHA with 3.5% down as well with 1.75% Upfront fee + anything with more than 3-4 units, there will be a SS rule (Self-sufficient test) to pass per FHA guideline.If it is a legal multifamily unit, you can also use those vacant units as your rental income up to 75% of gross market rent.

It also seems like you imply that the "fee" is somehow worth it based on this.

In Phoenix, I might call up a friend who invests in mixed-use properties south of Roosevelt Row, and that friend might know a local title rep who’s been working with out-of-state buyers who like to pull the trigger fast.

they will lose a ton of interest on 5.5% loan if we refi with someone else, but it would likely be 7% so its a lose-lose, they will lose our business and it could be in their favor to just drop the abusive term, ridiculous that a conventional loan doesn't let you keep the place after moving out. never saw that coming and this type of "pulling a fast one" is exactly why the other buyer who couldn't be present on closing specified that the power of attorney for signing closing documents was limited to exclude anything unnecessary. 

Because interest rates are high right now it probably doesn’t make sense to pull extra cash just to stick it in a bank account.

You can write into the agreement that the borrower pays the servicing fee.

But they take fees from you and charge the tenant more.

If that was the case I would let the in-process HELOC go, and shoot for a refi and HELOC at the same time next year to avoid duplicating fees.

I believe most places charge a 3 percent fee or more