@Weina Shi Great question, but I dont think there is a straight forward answer.

Between a cash-out refi and a HELOC I would look to a HELOC first since you have the flexibility to pay it down whenever you want and then pull the funds out again, which is powerful, but not many banks will do them on investments, and fewer for reasonable rates, so you'll have to compare whatever options you can find in your market.

I’m always happy to share my experience or compare notes.

Overall, RentRedi isn’t my favorite platform and it feels like they’re still working out some kinks, but it does work well for managing rent payments.This isn't the most straightforward process, but it's been working for me. 

Sounds straightforward?

In my home state of North Carolina, the laws are pretty straightforward in terms of zoning and minimum sq footage.

Very tech-forward and straightforward experience. 

Under "common eligibility criteria" you'll see that in 2-4 unit buildings you can have one active short term rental and it must be your primary residence.To decide between renting out the upper unit as a long term rental or short term rental, I think you should compare the potential ROI/cash flow for both options.

Once you have that cost, you can weigh the options of the cost of the cost segg, which is (price of the study + cost of change of accounting method), then compare it to the savings you would get.

I’m trying to understand whether this is a straightforward fix or a situation where the risk is being understated.Any insight or real-world experience would be appreciated.