Here’s my perspective based on personal experience.For some context, I’ve been investing in real estate since 2019, primarily in Detroit, while living in California.

Based on what you have explained here and assuming that all of it is true, than you really only have two options to get it rented1.

This is how much you need to increase your room rate to become profitable based on last year's information.

In previous roles, I was responsible for the asset management, capital improvement, repair, and maintenance of an ANG Fighter Base worth over $400M.

Note if you go over 4 units, your valuation will be based on NOI and comp rate.  

Though it may cash flow well based on their current debt service, when you compare the income it produces to the equity they have is it actually even a good investment for them from an ROI perspective or would they be better off liquidating and redeploying?

This is verified based on the good schools, department stores opening up (Costco, Target etc.) as well as verified investment from Jerry Jones (Dallas Cowboys owner) and the city to grow the population.

The interest being deductible is based on the use.

A potential challenge with a HELOCs is they are based on the current appraised value of your home, not the improved value, so you would need to make sure you have enough accessible equity.

The bigger point is that if you use Walmart, Lowes or some other big box paint the base colors can and do change which will make touch-up difficult.