The investor if they slip and the lender if they need to take the house back.  

Usually will work in GA, NC, OH, TX or FL areas.I am always willing to take advice from experienced investors on topics I may be unsure of and I am also able to provide my own perspective on topics I've studied, have been through or just my opinion in general. 

Security deposit will take care of the last month of unpaid rent, but I'm considering filing a small claims court lawsuit to get a judgement for recoverable damages.

If I am going to take time to prepare it, then I am going to want some kind of commitment from you to stick with me. 

Even if I take the 15% tax hit I would make $32,000/ year on the remaining $400,000.    

Obviously I don't know your entire situation so take my thoughts with a grain of salt.That peace of mind you get from a HELOC could be misplaced.

Is your highest priority immediate cash flow or would you rather have an investment that may give you a greater return but it may take a couple of years?

Title VICIVIL PRACTICE AND PROCEDURE Chapter 83 LANDLORD AND TENANT View Entire Chapter 83.49 Deposit money or advance rent; duty of landlord and tenant.—(1) Whenever money is deposited or advanced by a tenant on a rental agreement as security for performance of the rental agreement or as advance rent for other than the next immediate rental period, the landlord or the landlord’s agent shall either:(a) Hold the total amount of such money in a separate non-interest-bearing account in a Florida banking institution for the benefit of the tenant or tenants.

I do direct booking through the Houfy website, taking credit card payment by Square. 

I will definitely contact you when we start actively looking :) We are taking a little break in this at the moment.