It would be a good idea to assess your tolerance to risk and then plan something like that, but using a heloc is going to be around 9-11% in this market so to pay something off with lower interest rate to borrow more might not make much sense.

Im literally closing a loan on Monday where my borrower had a similar situation - the borrower's ex-wife was awarded the property and assigned the debt in the divorce in 2020.

Transfer of the Property or a Beneficial Interest in Borrower.

Vetting the operator or borrower is very important.

I had this exact conversation with a borrower just a few hours ago, and it surprised us both.

Lending as a whole is doing well, but there is definitely more risk in the lending ecosystem right now as borrowers stretch their numbers and get aggressive on margins to keep turning deals.

ALways  I never borrow for the dirt.

I would not borrow from ANY lender I learned of over the internet unless I knwe personally people who had used them. 

How much are you needing to borrow? 

If I remember correctly, there is a provision for properties with Fannie and Freddie loans to be moved to single-member LLCs after 12 months of seasoning if the only member of the LLC is the owner/borrower on the loan.