Even looking at the balanced rate (which I feel like is hard because the terms are different) along with the potential to have the monthly payment/fees covered, it feels like a cash out is a better option if we did want to keep this.Part of the current struggle is that the market was hit harder from the rate increase so sales are almost at a standstill and even with trying to sell the house, the rental market is doing substantially better because most military cannot afford to purchase in this area as the payments are over 6k/mo for buying vs 3-4k/mo for renting.Any advice is most appreciated!

If you go the 1031 route, here are some rules when trying to combine multiple sales:1. 

Try http://www.outbounders.com/

Maybe I am too old, or experienced, or both to understand that.If you're a starting investor with limited means and trying to grow really amplify the quality the button and dial down the quantity game.

Fannie/Freddie are, in theory, supposed to be used for owner-occupied properties and not investment properties, so they are trying to deter this type of behavior.

Are you trying to buy a place to live?

You will have to bring this up to legislators and try to change the law.

@Aaron Gallington- you will likely be limited to one HELOC on your home.....you  might try to ask present heloc lender if they can  increase it  or provide a larger HELOC  with a  higher CLTV Limit- good luck 

I try to keep it going strong and not get cute.  

Here is one of my posts on how it all started .Hey all, I see so many posts, " I am researching, " I am doing my homework" , I am trying to build my team" "Deciding on which area" So many are TRYING but never do anything, like a hamster on a wheel, A LOT of movement but staying in the same place.