This means less and less of your money is deployed capital until after x years it is all gone.  

What I'm really trying to get at here is a bit less about out of state v. in state, but rather the best ways to deploy my capital to maximize my returns.

Passive syndication investors need to understand what fair and unfair fees look like, and how to ensure that the passive investor is put in a good position.I can't personally comment on whether REITs or syndications are more efficient at value add because my first-hand operational experience is only with syndications, so commenting on REITs' ability to efficiently deploy capital for value adds would be more in the realm of speculation.

With the right team you can absolutely deploy that 400k into some great investments.

I will say that for someone who is looking to grow their portfolio over the coming 10+ years, I tend to take the view that the equity in my rentals is relatively dormant capital and if I can deploy it and a) not inhibit appreciation and b) generate even nominal incremental additional cash flow then using the HELOC to secure additional properties makes a lot of sense.  

Meaning, do you expect to sell in 3-5 years, some longer time frame, or hold as part of your legacy to pass onto children, grandchildren, charity etc...All of these things are important considerations to think about before you deploy your resources.

I immediately received deployment orders so I only lived in it for 9 months before starting to rent it out. 

However, assuming you are able to deploy the capital into a better investment vehicle compared to this current home long term, I would say yes towards selling it.

As a conservative investor and former retired military member with several deployments, I have made my money through a ton of sacrifices and over many many years of hard work like many of you.

But as I stated many years ago when I was on the BP Podcast, that the biggest mistake investors make is an inability to properly understand and measure risk, and thus they deploy their capital into assets that do not match their personal risk tolerance.