I've not done it and my one criticism is the risk of interest rate increases, but if you're contemplating a HELOC anyway, you should probably read up on this a little bit as it may save you even more money.  

I am contemplating selling it, but there is an 1100 SF shop (garage) attached with a MIL apt above it (approx 950SF with kitchen, full bath and 3 other rooms) that has a separate entrance.

I just started contemplating about being a real estate investor about 2 months ago.

I keep contemplating whether of not its smarter to keep or sell with such a high HOA that will only increase.

@Don Carey Oh ok, my mistake, when you said move away from SFR, I was under the impression you were contemplating unloading those properties and moving that money to more multifamily. 

Or you find out that your PM found his wife under the keyboard player of an 80s cover band last week and is locked up for ag-assault in the county jail for thirty days with no one available to collect rent or continue the process of evicting those people on Center St. who might or might not be running a under-the-table daycare center/illegal pain pill distribution center out of your property...Does your whole house of debt collapse because Murphy wasn't in a good mood this week?

Contemplating on whether to level the house and fix land grading/drainage issues which may end up costing $20K and doing some cosmetic updates or whether just to leave the house as is and do cosmetic fixes and just disclose to buyer that it is not level. 

I am contemplating selling the home and using the proceeds for a 1031 exchange whereby she would purchase a condo to live in, and another condo for rental income.

And makes sense after reading your response that active investment (as I was contemplating) would be treated differently from a tax perspective.. 

He had a felony for assault.