It seems to break even on my calculator at that point, but seems risky to have to cover the refinanced mortgage. 

Most likely when you apply for HELOC, your lender will pay for all costs, and you will not incur any out of pocket costs.If you want to do a "Cash-Out Refinancing", I think this is when you have to really plan things.

Assuming your financial situation hasn't changed, if you are refinancing to a lower rate, I'm not sure why you need the house hacking income.

After paying off any existing loans, whatever remains from that $140K is what you can “cash out” and put in your pocket.For example:ARV: $175K80% of ARV: $140KExisting loan: $100KCash-out: $40KYou could pocket the entire $140K if there's no existing loan.Decide between refinancing or selling based on whether you want to keep the property, use the equity for another investment, or take the profit and move on.

Energy tax incentives were expanded and extended through 2032.Be sure to keep an eye out for any changes to 1031 exchanges and capital gains tax rates.Buy, Borrow, and Die StrategyA great estate planning strategy for transferring wealth and minimizing taxes is the Buy, Borrow and Die Strategy.Buy: Purchase multi-family properties that are appreciating in value.Borrow: Use HELOCs or cash out refinancing to pull equity out of the property as it appreciates.

Interest rates are poised to start coming down and refinancing is how you time real estate.  

This is a single family home and was originally a primary residence before turning it into an long-term rental.Some strategies I'm considering to grow my portfolio are using a HELOC/1039 tax exchange to purchase a second investment property/multi-family property or refinancing my current investment property into a conventional loan to utilize another FHA loan for a primary residence (with the idea of eventually turning that into another long-term rental).I currently have a 7% interest rate, and am considering refinancing in the coming months if/when the rates drop.

Provided your Sub2 purchase closing is done complete with all the necessary paperwork (e.g. limited power-of-attorney between the sellers and you), refinancing should be no different than a normal refinance.Sub2 can be heaven or hell, depending on the quality of your closing paperwork.

Given that you have somewhat higher interest rates on 2 loans you might consider refinancing but not paying them down which would allow you to keep your reserves in case you need them in the future.

If you needed to pull cash for the rehab then I think HELOC would work best to keep your rate, but if you're only refinancing to move the property into your LLC then it doesn't seem like it's worth it.