However, even in an equal exchange, recapture tax might apply.

Interest rates between a HEL and a refi are comparable, the equity in the property is equal to the value of the property and I only need about 50% to purchase another property.

All things being equal, a simpler option would be to terminate the lease with a penalty of one month's rent, agreed to in writing.

Each of the 12 Rooms become 12 individual condos - each Condo shares equal access to: 3 Bathrooms, 3 Kitchens, One Basement. 

When the rent rates stabilize, I suspect they'll bring it back.I wouldn't try it in a location like Portland, but 99% of the country would be fine with a policy like this as long as it is disclosed and applied equally.

If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.6.

All else being equal, lower mortgage rates reduce the cost of ownership and, thereby, allow more people to afford to buy.

I do want liquidity to invest elsewhere which is why I'd like the cash back from the reno ASAP, but I don't need liquidity equal to the value of the house--just the basement build-out, if possible.With option #3--how do you "cash out immediately"?

However, if that effort fails, the local agent is equally liable – criminally and civilly – for any fees, fines, etc. associated with the property." 

All things being equal, I would accept these applicants, but I would require them to pay a deposit equal to two months of rent.