I think we have the option of taking out a heloc  and begin to invest elsewhere.The other idea , that I was thinking is paying off our primary residence which we owe 425k.

It is much easier to find HELOCS for your primary residence, but some lenders will do a HELOC on a investment property as well 

The parent must file a gift tax return annually, and any remaining balance is included in the estate.If the home was your primary residence for at least 2 of the last 5 years, you may exclude up to $250,000 ($500,000 if married filing jointly) of capital gains from taxes.

Investment Info:Single-family residence buy & hold investment.

So they price those homes at what a willing homeowner will pay for their personal residence.

I have also utilized owner financing for longer periods of time, including personal residence and 2 barrier island houses on the coast of Florida.  

I am a long time Little Rock investor and resident.

If you do have to move because of a job, you would be safest (in my opinion, i am not giving legal advice or financial advice), i would sell that property to ensure that you did not just purchase with the goal of moving out early and taking advantage of lower rates and lower down payments for purchasing your home as a primary residence. 

They cited insurance reasons, which could very well be true, but many residents felt it as a big "f you" Now folks from outside the community could argue this was an entitled stance from the residents, to feel they had access to this private land when they didn't, and that on the face is certainly true.

Personally If you like your current residence and hope to stay there long term I would forgo major improvements on my primary and use all investment savings to make you more money and cash flow.