We then discovered homeaway and rented an “unrentable” property for 120 nights and will actually profit on the house this year for the 1st time in 13 years.

Its rental real estate, at its core it's a profitable business.

Open a HELOC to access remaining equity (80% LTV), and re-invest on other assets (out of state properties, private lending, etc)In the end, you have an asset like other people mentioned above, that will continue to appreciate in the long run, and you have access to the equity to reinvest and make more profit. 

It can be a huge hassle to deal with, but there is profit to be made if you do it right.

How do you think I should restructure to make 1k or better on profit.

Profit sharing?

Make sure all assumption are confirmed.At $1300/month per side total ARV should not exceed $260K unless you can flip it at a profit.

We ended up profiting a little over 10k, but I really feel the lessons learned will benefit us so much more! 

Rules for FHA may be different, but as long as you pay yoru captial gains tax on profit who cares how long you have owned it?  

-When this house I’m living in now was a rental rents were high enough after 3 years that it shows a profit even on paper (cash flow about $700 a month).