.- I've been on the sidelines with this weird high interest rate and volatile environment for about two years now.

In my opinion Option 1 could be a bit risky in today's environment as we are not sure if prices have hit the bottom yet, there are positive signs in the CoS market that point to price appreciation in the future, but there is a good chance the interest rates are not coming down for a while, which will have a negative impact on home values. 

People have to really put in the extra work for their clients right now in a low inventory environment.  

We are in a Tough environment.

The current interest rate environment’s impact on HELOCs will offset any potential benefit very quickly.

I've not invested in CA, and I'd enter that market extremely cautionsly based on various rent control issues, eviction issues, and the political environment seems to be very unforgiving for landlords. 

The debt adverse angle is going to pay off in a higher rate perma-environment.

Right now, the system tends to create an environment where even lousy agents generally can't screw things up.

Depending on the current environment and competitiveness of the market it can sometimes be hard to find the same yield for the same risk. 

Then, you can consider possibly  exchanging those that don't fit your goals.In the current environment, I would be very cautious of making any sudden moves without fully assessing your current situation and returns.