Finance dilema

[Manoj Narayanan]

Hello, I've a major confusion and hope this is the right forum. Here is the story. I recently moved to a new single family home. I rented out my previous house, which is currently valued at ~300K in Zillow. I created a new LLC and unable to move the title over to LLC as the mortgage company wouldnt allow me to (learnt the hardway). I've a $125K outstanding mortgage on it and a $105K HELOC maxed out. Rent covers it all + property tax etc etc (breakeven or slightly on the positive side). I'm getting back $140K from a foriegn investment in a few weeks. Now my dilema is

1. Should I pay off the mortgage so I can move the title to LLC for better protection and write off expenses and take advantage of depreciation etc and also help with my cashflow. This will allow me to increase my HELOC line and then borrow for further investment. I understand I may have to do a cash out refinancing and paying off my HELOC.

2. Should I use that $140K cash and buy other investment properties (I plan to build a buy and hold portfolio).

3. I plan to sell the house in a years time when the lease is about to end.  If I leave it as is (not do option 1 or 2), i'll get ~$50K.

4. Pay of the HELOC. It doesnt make sense to me, but its an option, unless someone thinks otherwise.

5. Or are there other options 

Looking forward to your expert opinions.

Thanks

Manoj