However, I have almost no trade skill knowledge so I'm looking at demo, cleanup, yard work, etc. type of jobs. 

-We have debt pay down, as our tenants progress through the mortgage-We have tax benefits that enable us to trade up or simply claim deductions.What refinancing does for YOU is allows you to catch those profit centers.  

I have not done a 1031 exchange, but my understanding is that often times people do that to "trade up" to a larger (or bigger) asset.

@Jerry Zhang - What do units normally trade for in the area?

I work in the trades as an electrician.

A Heloc is a open end mortgage like a credit card so its an additional trade line on credit, cannto never be used as an Asset, PITI reserve, and its a DTI killer in most cases.A heloc is also usually set up on a shorter term versus a mortgage, carries a Higher interest rate, and most carry a interest only with a prepayment penalty.

There are trade-offs for each city, so you need to better define your goals.

If I am not considering the tax consequences, which are relevant, I would sell just because holding a property in West Milford doesn't have that much scale.

If you are not in the trade or business of lending, the interest will be considered portfolio income.If you are in the trade or business of lending, the interest will be considered ordinary income.

Soft assets like specific stocks and preservation phys assets this may not apply to, but you keep those at low % in your portfolio and actively "trade" those.