I'd play that aspect up.Best of luck with this one! 

What's your risk tolerance at this point, playing more aggressively or preservation?

Yes, I'd be looking to invest in a MF home (most likely 2-4 units) for a reposition play.

A prominent MLO in the northeast was recently charged and stripped of his license for playing this game with his borrowers.Also, everything is reviewed by underwriting.

I think knowing more numbers, heloc limit, plans and objectives for future goals all should play into "what is best".

Also something to consider is what is the appreciation play looking like? 

nice job I grew up flipping land I love that play still fund land flippers to this day is a niche of lending that I have carved out.. 

The big boys play this as a team sport, so think about what you need to know, who you can get it from and then go find that person.

Together, they have a lot of units in play there and have done very well with long-term rents and mid-term as well.

Selling now avoids capital gains tax and lets you reinvest into a new primary home and a solid rental property, which feels like the safer play given the cash flow challenges and ARM timeline.