Simply need the cash.

I was extremely humbled by people and their excuses when it comes to paying rent on time.

Coghill they are trying to take care of several things:1) Approval to access credit reportsA video tour of my home office (required by the credit repository to show security, so access to office & computers is limited to avoid data theft)Credit checks on me and my partner (required by the credit repository to make sure you are not criminals looking to steal others' data)Copies of the deeds for every property we own (required by the credit repository to confirm you aren't just self-serving)A copy of my partner’s home lease and utility bills (required by the credit repository to prove his legal address, so they can pursue him criminally if he steals data)Business phone bills (required by the credit repository to prove an actual business)2) Approval to use banking ACH system to accept tenant payments and pay ownersBusiness phone bills (required by banking industry to prove business legitimacy)A signed letter from the bank verifying our accounts (to prove legitimate business banking accounts.

My goal of refinancing was simply lowering our monthly spending to reallocate towards future investments.

We are responsible for the mortgage as of January 1 - but it's come to our attention that they stopped paying it back In October 2024.

A HELOC offers flexibility, as you only pay interest on what you use, but rates tend to be variable.

The equity is actually what you are paying for the property.In this case let's look at the numbers that count,...the current numbers.You have about $500k or more in equity, which is buying you a property that's worth about $700k (I went with the lower PV. 

Why would you do anything that effectively pays you less than that?

On a 320k property Ill be paying 9k annually. 

Very commonly the resident pays a portion of the rent so your rent increase will affect their budget and their lives.