Current federal rules state if I hold it for 10 year's then I will pay 0 federal taxes on the gain when sold. 

Four federal returns means you've got a lot going on!

However, I was just quoted to refi with my current lender:IRRL NAVY FEDERAL:30 YEAR:.5 DISCOUNT POINTS 1 ORIGINATION FEE(PAID AT CLOSING $31,510)RATE: 3%MONTLY: $1829.763.375 &(NO DISCOUNT ORIGINATION FEE)RATE: 3.375MONTLY: $1918.69 VA CASHOUT STANDARD3.375%With this new loan, I would be positive in cashflow (about $800/month for a $2800 rent) if I opt for a non-discounted rate. 

But @Mat O'Grady mentioned some great banks, the only two I would add that I have HELOCs with are Nutmeg Federal Credit Union (Meghan in central branch I believe) and FINEX Credit Union out of EH. 

On paper, federal rule requires a short sale to be reviewed and decisioned within 30 days of submission of a complete package.

Federal & I-70 area.

We reached out to Mission Federal CU and they have some great deals on a primary residence HELOC they offer (2.99% intro for 12 months, as low as 4.75% after that with 10 year draw and 15 year repayment period up to 100% LTV) BUT they have to use the home's purchase price as market value if it's been bought within 2 years.

I worked for the Federal Reserve Bank of Chicago for almost 20 years, I know for certain it should not take a full 10 business days to clear.

We had to replace electrical panels and rewire due to twisted aluminum and copper, plus had to replace the old Federal Pacific panels, at $3k for the panel and similar price for rewire.

You will be required to file a federal tax return in addition to a California non-resident tax return.If the California shows a net rental income, you may have to pay a tax to California.If you have a loss, you may be eligible for a Net Operating Loss(NOL) if the state allows for it.