@Drew Sygit brings some good insight into the possible pitfalls.

I don't want to rent it out as it seems like an electrical liability - and I'm not sure if renting it to others would be legally possible seems how we don't own the land.

Or should I consider the possibility of adding in a small restaurant? 

I say to look at these hard because these items can occur for a period of 12 months possibly without major issues of seeing large cracks or settling if a lot of water hasn't been present in large volumes.

It’s possible, but I wouldn’t advise it.

But ya have to make some educated prognostications in life.Add this to the information your processing - What your talking about doing is eliminating around $4000 or interest expense (which is deductible anyway so really could be a real impact of eliminating $2800 or so) of debt in exchange for paying over $10K in capital gains tax (don't forget possible state gains tax as well).  

Im an investor in southern il metro east area,looking to invest in st johns county possibly flagler county mainley rehab and flip we will be in the area in march do you have any recommedations on what areas is a good flip area

(43.75%)I feel like some of you are not understanding what I am actually asking...very possible im not asking properly... 

Beginning my house hacking journey and looking to connect with as many other investors in our area as possible. 

We would have to come oop about 400-450 for 2nd HH.Also planing to use other rest of heloc for a dscr or brrr so that would possibly help as well.Would you wait until rates drop to do another HH and just buy the brrr/dscr now?