In addition, once you have both properties cash flowing- you could focus on paying down the heloc quickly to free up more CF(start benefiting from compounded gains over time), or pay it off when you liquidate the primary. 

Death in the family, divorce, job loss, etc...compound that with the deluge of creditors calling and mailing, not to mention the investors and realtors just wanting to help them in their moment of need and you start to kind of understand the people your going to be working with. 

If you had $100,000, you could buy 4 houses for $400,000 and watch the power of compounding kick in.  

Twice :) Then I discovered "exponential growth" and "compound interest" and decided I'd rather not live off my cash flow! 

That works in most markets but the results are compounded by appreciation.Development and infill are also options.

"I wish I would have started at your age, compound interest is a magical thing and time is the one variable that we can't control".

This is where I’ll be tonight http://healthandhappinessfoundation.com/baby-steps-to-success-using-the-compound-effect/ hoping to meet a few people.

Also, a thing that could compound over time and make a difference is disputing the property tax assessments annually. 

For you to just get back to $700K market value, that assumes a 1.2% rate of appreciation on your property over the next 10 years compounded.

Compound interest is your friend.