Also, some helocs will offer Interest Only payments, some that go above 90% LTV may ask for 1% of the outstanding balance or 1.5% of the outstanding balance.

Pot smell is notoriously difficult to get rid of. 

Much more difficult to raise EQUITY capital through partners 3.

Keep in mind that when wanting to do this with a mortgage banks first want to see substance and at least one yearly balance statement.

So overdue rent balance. 

Payments stay lower, cashflow better and it'll boost your balance sheet not to mention lower risk when things go awry. 

I’m also open to alternative strategies, such as private lending or passive investments in funds, to diversify and balance risk.Does this phased approach seem reasonable given the higher HELOC rate?

Also, it's likely that a slightly smaller amount of each payment will go toward principal since the loan balance is higher and the rates are likely nearly the same once the MI of 0.5% is added to the rate.

Even if you have an excellent team built with plenty of trust, it's really difficult to do this without having lots of face time and rapport building. 

Those can indicate poor management, deferred maintenance, difficult and expensive upkeep like ocean front which will bring up issues with rising oceans, insurance, and hurricanes.