If you are miserable and you feel like your situation is crippling you then that is not a way to live.

Are there any ways to use the equity that don't have brutal rates?

Either way, the city may flag a rental structure that wasn't permitted.Good luck!

Somewhere in the middle is likely your best bet for a 20 year timeline.I have almost 50 units here myself and that's about what my portfolio is cash flowing at this point combined LTV is around 65% as loans have gotten paid down and values have went up.

Perhaps that isn't what you asked, but that's my advice that I learned the hard way.

The best thing you can do is start by educating yourself.

Best way is to just try to break it down piece by piece.Water- how is it being delivered to the homes. 

The HELOC would act as en emergency way to tap into their equity if needed - as long as they don't spend it unwisely!

Best of luck in your search! 

The best way to get experience is to do the thing.