Last thought (mainly for future readers), you may be talking about the 1 year FHA history if you have variable income.

He was happy to allow me to rent out nightly because it actually helps keep his property in better shape than a long term renter (having a cleaner in there every turnover, short stay guests always let you know when something isn't working, etc) but didn't want to hassle with worrying about a percentage of income/management, etc.

Have you considered a cash-out refi instead of a HELOC to lock in a fixed rate and avoid variable rate risks?

With the limited info, I would say #1 is your smartest option but there are a lot of variables missing.

This is the percentage of costs (purchase and rehab) covered by the loan.

@Jason Dubon I use a percentage of the rental income to prepare for expenses.

That helps some...but your variable expenses also go up too - property insurance & taxes - so a lot of your rent increases go to offset rising variable expenses.I started at the age of 47 in 2018 and we bought properties fast and furious - 12 the first year, 10 the next, and 9 in 2021 and currently have 38 properties. 

@Minh Nguyen - what do those percentages represent?

HELOCs are usually variable rate and there may be yearly fees associated with maintaining the HELOC.

This is the percentage of costs (purchase and rehab) covered by the loan.