You would likely use the proceeds to pay off the HML, leaving you with a new mortgage (which you paid to get) and a HELOC payment (and possibly a residual balance with the HML). 

The parties acknowledge and agree that neither party shall have any liability or obligation to the other with respect to the matters set forth herein unless and until a definitive PSA has been executed and delivered by both parties.ConfidentialityThe parties agree that all information exchanged pursuant to this LOI and the negotiation of the PSA shall be kept strictly confidential and shall not be disclosed to any third party, except as may be required by law or as necessary to obtain third-party consents and approvals.We trust that the terms outlined in this LOI are acceptable and look forward to your favorable response.

You could sell and 1031 it into the next property but you'd usually have to time the sale of your existing property and the closing of your new property right.I also wouldn't worry about having central air in the property unless that is essentially a requirement for you to remain competitive with the rest of that market.

SB1033 is likely useless for your intent as it allows jurisdictions to Set their own requirements which is exactly what existed prior to SB1033. 

Handling Maintenance requests and emergencies, Handling tenant disputes, Ensuring the tenants are properly insured (if you require them to), Marketing the property, Screening applicants, Handling the security deposit return, and a whole lot more. 

You'll have to balance cost vs features!

Mine are 5% of loan balance if prepaid within 1 year, 3% within 2 years, 1% within 3 years. 

You won't sell it if you didn't get permits as most municipalities require you to get a CO or the buyers will do an OPRA request and see you didn't pull permits.If you did electrical or plumbing without a permit, the walls will need to be opened up to expose the work.You won't be ready to sell in 3 months.

Mike,Under most Insurance policies for rented dwelling, apartment buildings, etc. that include Business Income or Loss of Rents coverage, it requires a covered loss. 

How do you balance the workload between seasoned agents and newcomers?