Could trigger the due on sale clause but extremely rare.

A contractor I know just told me one of his workers just threaten to sue him for $20K for injury he got from using the pressure nail gun while working at a house of another landlord. 

Been meaning to do so for a while now but can't ever seem to pull the trigger, I believe this is due to my perception that I am not yet educated enough to do so.

At my current phase, I am building my education, building the capital, team, and plan/strategy and looking on pulling the trigger in 2022.I’m in a currently unique position.  

If you had more equity and had to choose between the two the answer is it depends.If your rate is high and you can lock in a much lower rate ( by about 1.5-2% plus ) then the cash out refi is the best choice , also if you already had a property or two you have in mind that your ready to pull the trigger on and put in an offer for.If you are unsure of a property but you want to be able to borrow when the time comes, the HELOC is better because you pay no interest until you withdrawal the funds and you can do it on any given business day.

Educate yourself first (like you're doing now on the forums) before you pull the trigger on selling this property to buy another one.

@Sonam GillSonam,Your conversion from a 3 family to 4 will require a change of use and more importantly move your unit from residential to commercial which triggers a litany of zoning requirements to conform (parking, FAR, refuse, etc.).

Generally, any cash received at closing would trigger depreciation recapture and/or capital gain taxes to the extent of the cash amount received. 

I don’t have a problem pulling the trigger when I feel like I have enough knowledge under my belt.

Transferring to a LLC might also trigger a "On Sale" clause because the deed would be transferred over to a business from a person.I'd get a umbrella policy though.