I have replaced the kitchen with all stainless appliances, new AC and Furnace, and Water heater, new sump pump, new basement grinder pump, new pool pump, new pool cover, and done a lot of painting on the main floor of the house as well.

This was my main question, if I pull out a HELOC now and then sell the house after, is that money considered for Capital Gains tax since it’s technically a debt?

The main thing about Vegas is that cash doesn't matter here.

I’ve read a few post here on BP but still feel out of my element.

Just check your state for licensure requirements. there are 12 states that require NMLS and state license. mainly west coast and the Dakotas and MN.. quick call or look up will tell you,  For sure though you can do owner occ at all with out NMLS and state license. unless there is a carve out for a few a year this allows owners to sell their homes on contract but does not allow someone to make a business of it.

My main reason for renting it through AirBnB and HomeAway is to pay for expenses so that we can use the home also.

However, I’m debating between 3 main options:A) Buy a primary residence with a higher down payment and lower my monthly mortgage payment.

I avoid high tension power line routes and toxic waste dumps areas and industrial areas and light manufacturing areas and main highways.

Rentler, rentometer, zillow, and craigslist are my main go-to's. 

I have already changed main entrance/exit exterior doorways to digitized keypad and still has not put prospective tenants minds at ease. please give me some feedback!