We lose our EMD? 

A lot of people add fear is a huge component onto why you’ll hurt to lose some money.

It can never lose money buying real estate.

Note, even if insurance pays for all the damage your property suffers, you still lose.

We don't want to do a cash out refi and lose that interest rate, so we are thinking of a HELOC.Here are some questions/situational facts:Do most banks generally let you do a HELOC for investment purposes, or would we have to go with an investor-specific lender?  

I will be losing roughly $300/month in cash flow doing this.

I'd lose out on all that appreciation and in exchange I up my cash flow from $1K/month to $5K/month..

**except you could lose all your money

@Nisarg GandhiUnfortunately, you may lose out on the partial exclusion if you rented the house prior to sale.The exclusion is dependent on sale as a result of the move.

Do your best to be professional and assure them there is no way they can lose money.