I believe the best way to go about this would be to utilize the HELOC as your new checking account and sit all of your monthly income inside it to reduce principal, which in turn reduces the amount of interest you pay and basically reduces your monthly payment every single month.

Being that you're in the other unit, you'd be paying over $2,000/month yourself - NOT including taxes, utilities and capex. 

Account Closed yeah I've been selling a lot of fourplexes lately and they should all cash flow, even with appropriate numbers for vacancy, utilities, repairs, capital expenditures, and property management.

The property itself is not producing any additional cash flow.

Keep in mind your holding costs also will include utilities and insurance (I assume you plan to carry insurance). 

Residents pay all utilities.

(After accounting for other expenses: utilities, appliance, extremes I am looking at a total of about $1,020/ Mo.).

not reallyAnother level of complexion is losses that are passive may not be utilized to offset your other income while some taxpayers can. sometimes it's best to keep things simple. 

You can buy your first rental with just $15k out of your pocket, with that money you can buy a rental property that produces $200-250 net cash flow per month!

Generally, if there isn't a separate meter, landlord can't make tenant pay utilities as there is no way to truly decider what portion of the bill belongs to which tenant.