I would have raised objections before the “re do” though.

Probably best for you to re-visit your stance on screening tenants so you are not in violation of any laws of Fair Housing, Disparate Impact, or Discrimination.Good luck out there! 

Most states are like this.. a few you don't have to be licensed but I would say 90% of the states you need a RE license to manage others properties..

It will take minimum of one to two years to get the permit to re-zone, to finish building etc.  

I'm looking for the best attorneys, lenders, property managers, RE agents, other investors, accountants, and contractors.

Would you also ask a PM to get you quotes for re-roofing?

I don't see why you wouldn't be able to refi into a new HELOC, granted you have enough equity to get a new loan to absorb the old one and still give you some breathing room.

Also, the mortgage payment after a large cash out re-fi would be the same as we currently pay on the various mortgages we currently have on our rentals, so our cash flow would be unaffected.  

I believe the lot size is considerably smaller than allowed for four unit housing   Re zoning. 

:-D  Otherwise, have you tried asking any local RE agents?