You won't pay the 10% withdrawal fee and use it as you see fit. 

Further leveraging makes me slightly wary currently, but the added cash flow through the new rate and investing capital that I'm freeing up fits my overall strategy.

There is no one-size fit all answer to a question like this.

HELOC's are good fit if it's short term money (less than a year for flips, etc.)I've helped a lot of clients the last couple of months with evaluating their rental portfolios of doing nothing vs selling and 1031in vs HELOCs vs cashout refis.My vote is a cash out refi.

@Jonah Cervantes If you lived in a market that fit your cash flow goals, it would make sense to invest locally but you don't.

You should set strict screening criteria for what you are looking for in a potential tenant to steer away those who would just be wasting your time.BiggerPockets has recommended screening companies right on their site that you should do some research on to see what company best fits your screening needs. 

Make sure you get the best qualified and a tenant that will fit with your ideals.

Shop around, not a single one of us do things the same, so you will want to find the best fit. 

I have a fitness business.

I'm continuing to look, and if something fits with my investment criteria I wouldn't hesitate to make an offer.The one qualifier I'd add is that there are a lot of multi-unit properties where I live that are part-residential and part-commercial, and I'm personally hesitant about investing in retail/office space right now given both macro (COVID) and local (fair amount of surplus supply) economic dynamics.