They replaced the locks, shoveled the driveway, took photos, and are listing it today.

, we are not able to do keycode locks there. 

I've heard of people being able to lock their HELOC rates after opening the line of equity. 

No additional locks shall be placed on doors or windows.

Refinancing next year would likely allow you to lock in a potentially lower rate than the 8% you're currently at, especially if the market conditions continue to favor lower rates.Avoid Duplicate Fees: You're right in thinking about avoiding duplicate fees for the refinance and HELOC.

I approached them and told them our plan to convert the space (assumptive sale style) and offered to renew their lease and lock them in for the same rate for 18 months at the same time.

Seems very locked-down to Zillow listings in their current as-is layout.

Can you ever use these funds as they accumulate to go purchase another property or does that trigger taxes?

I agree with Nathan for his situation of owning 12 properties, but for someone just getting started I wouldn't suggest getting locked in with the one-time fee.

Definitely wouldn't trigger the clawback penalty but it's still good to be aware of it.