If you're both in and this is your best option, go for it.On the other hand, looking into multifamily buy & hold properties could yield similar results with less hassle.

Quote from @Hemed Tov: I would really get with someone in that market that can dig in see what is going on with the market (comps), and also maybe the rehab was not as good of a job of what the market is yielding at 300K property.

Do you have clarity around different options there are to create cashflow besides pure yield/interest/rental income?

The project yielded strong returns, demonstrating the power of strategic renovations and expert project management.

If you have an ensuite, which you may, it could make more sense since they typically rent for $1k / month in the Atlanta market.Converting the entire property to padsplit would make more sense in my opinion and should be able to increase your yield that way.

Regardless of what approach you take you must find an avenue that would yield a return greater than the cost of the HELOC.I've been in this position and chose to buy investment properties in the Milwaukee WI market.

When we moved, we turned it into a rental, hoping this would be the start of our real estate journey—something we’d like to continue once my husband retires.Some key details:My husband is active duty and will retire in 3 years.We have one final move coming up this summer to Raleigh, NC.Our current debts are crippling us—the high interest makes it tough to stay afloat every month.The plan me and my husband are thinking bout:Sell the rental property.Use the proceeds to pay off all our debts, set aside emergency funds and a down payment for our next home.Free up $1,500/month from debt payments, and that also can stash in a high-yield savings account.Regain full VA loan entitlement, allowing us to purchase a multifamily home and use the house hacking strategy for up coming move.Avoid capital gains tax, since April marks five years of ownership, and the tenant’s lease ends in May.This wasn’t our original plan, and we hate the idea of using our equity to pay off debt.

People are always wanting passive yields where they do next to nothing for checks in the mail.

Check out Norada Capital with a simple no fees structure and 12-15% annual yield depending on how much you invest.  

Prepayment Penalty (Defeasance, Yield Maintenance, Flexible Prepay Options): What is defeasance and how does it work?