The better option would be depending on your priorities.

Selling for $380k means an $80k taxable gain at long-term capital gains rates (0%, 15%, or 20%, depending on income).The $80k HELOC used for personal debts doesn’t affect your taxes.A 1031 exchange could defer taxes, but you’d need to reinvest in another investment property, not a home for your mom.

Both options have pros and cons, and the right choice depends on your lifestyle, experience, and long-term goals.

It may even be higher than 5% depending on the area. 

Also, depending on the amount you get from your divorce, you might have more options. 

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CT is 1-2 hour drive from my location depending on the town and is manageable for one project.

It really depends on your bigger picture and also what you are hoping to accomplish in the future.

Depending on how much time you have before needing to dissolve the partnership, the partnership can sell all the properties and complete 1031 exchanges to defer the capital gains tax. 

The right strategy for you is going to depend on a few things, like your risk tolerance and how much cash flow you need to hit your goals.