Two properties are in a small town of 4.5k the others are about 5 miles away in a rural area near a friend's house.I might be able to flip the property in TN with a friend that is a contractor to get more capital.I can punch the numbers just as well as any of you...but I am asking about taking a step back and looking at what looks to be the most successful plan of attack for accomplishing the goal.

It gives a degree of separation between the job you need to accomplish and the relationship with the tenants.

However there are some 1031 compatible passive investments that might work for them and accomplish the three goals of 1. 

I mean what are you trying to accomplish?

What are you looking to accomplish with your investing?

Look at it as a good thing, as a goal to accomplish, that's what I love about HELOCs.

Know what you want to accomplish and when.  

If you really "like out of that area", wouldn't a straight sale accomplish that - quickly?...

Getting rich on real estate with no money down is a great dream, but it's almost impossible to accomplish.

So, you may need to pay it off prior to doing a cash out refi with a traditional bank, or at the very least, tell the hard money lender what you are trying to do and get their blessing for the transfer.Most hard money lenders are easy to work with as long as they know what you are doing or looking to accomplish.