Should I pay this off and free myself from the mortgage and open a HELOC or should I refinance? 

My suggestion would be to cap your utilities at a certain amount and have Tenants pay anything over that amount.That will help you manage your expenses, and also allow Tenants to gage their usage each month, and make adjustments if they don't want to go over the allotted amount.As far as collection, provide the bill showing any overages and just have them pay for it along with their rent. 

My problem i is my market is super expensive if I stay in the nyc area and I don’t have the confidence since I don’t have any actual experience to invest out of state do you guys think paying off my mortgage would be more beneficial than looking for more rentals .

Why not take out a loan from the equity to pay off that debt?

If you are determined to pay one off, then pay off the lowest balance first. 

Miami Rental Market Update: Rents Drop $200 as Affordability Remains a ChallengeMiami has officially ranked as the second-most unaffordable city in the U.S., but there’s some good news for renters: local rents have dr...

Why not just sell it and get a cheap car, pay cash?

These tenants ahve all of the signs of never paying you or paying a little as their balance continues to rise.

End his lease, and find a tenant willing and able to pay market rate.

If it's a strong return, then it may be worth paying off and keeping.3.