If we put what her husband did to the side (I would recommend that your friend consult an attorney for that) and assuming "made the HELOC go away" means to pay it off, then most certainly this makes sense. 

I'm an IT Consulting guy by day & RE investor by night so getting into the details of all of the technology offerings, how they integrate, which capabilities overlap/don't, where integrated value sits, etc. exposes my nerdiness/love for this kind of stuff.

*Licensed closing agent *Real estate consultant for ODOT *Licensed realtor*Property management superstar*Former underwriter assistantInbox me for consultations, property management or co-hosting your airbnb.thanks

My husband still works, and he has a consulting business, so for now we are ok, not great but not yet dire, he works 100% remote so only if it makes financial sense moving OOS to fulfill next step to get to financial freedom- it is an option . current picture. 

This is the breakdown:2 tenants on month to month leases ~$250-$350 less than market1 long term tenant (15yrs) is now on month to month lease and is paying $1500 less than marketAfter consulting with a couple of people and doing some research, it sounds like anything over a I should apply banking rent raise and submit a 60 day notice (all of these units fall into that category).

All these "mentors" or "coaches" or "consultants" you see out here on notes writing books or whatever, are not teaching finance, or law, or taxation, or even personal finance, much less foreclosure law, safeguarding collateral, evictions privacy laws nor brokerage laws.

But furthermore, consult with your attorney.Hope this helps.

@Elliot Angus To structure this deal, consult a Qualified Intermediary (QI) for 1031 compliance, a real estate attorney for seller-finance terms, and a CPA to ensure tax deferral.

It's important to consult an attorney and an accountant eventually, but your first step should be to discuss your plans with your lender.

I would probably consult with a general contractor on making the space livable (If possible).