The str will close before the land sells and then I would like to recast the loan to pay off a portion with the land proceeds.  

Make sure that you get the rentroll and the bank statement to verify that those tenants are paying that amount of rent.

You might end up paying taxes on the personal side for money you wouldn't even distribute to yourself. 

Tenant is paying $1300 a month; market rents are $1800.

I have 3 condos in San Diego that I'd like to refinance and take equity out of (to pay down debt).

Then use a multifamily FHA loan to pay off the loan I used to build the homes to hopefully lock in a better rate.

Or would you have to pay commercial property taxes since it is technically considered an investment?

The goal is to reduce living expenses while paying down some of your mortgage liability and learning how to be a landlord. 2.

If you truly want professional advise to confirm what the other forum is telling you, or to assist with your own research, I would suggest paying for a consultation with a CPA rather than relying on that of a free/public forum. 

If I want the money out for a longer period of time, longer than a year, I prefer to refinance.A HELOC is much like a credit card, in that you pay what for the amount you use, and it can be repaid and then drawn on again.