(Note: variable rate; watch DTI.)Cash-out refi: one fixed payment, simpler, but you reset your low rate on the whole balance—often a deal-killer in today’s rates.Consider a delayed cash-out after it’s rented if you need more capital later.3) Tax angles (high level):Converting to rental starts depreciation; great for sheltering rent.If you might sell soon, the §121 exclusion (up to $500k MFJ) can be powerful; after conversion, timing and “non-qualified use” rules matter.Interest tracing: HELOC interest is only deductible against the use of funds (e.g., rental improvements yes; new primary down payment, no).Always best to consult with your CPA to run your numbers, so you can choose with confidence.

What does your lease say will happen if it converts to month to month?

I am happy to accrue the $500 / month interest so long as they come through and eventually pay, but they have paid in the past, so I am hopeful that they will do so in the future.

If/when you use the line of credit to purchase another piece of real estate, be sure it'll cash flow once you convert to a long-term loan.

Phoenix has plenty of inventory right now and motivated sellers will eventually come down to reality when their properties sit for 90+ days.

Pad splits usually have large shared areas in addition to the private spaces, that is what makes them a pad split rather than just a house that was converted into an apartment building. 

If you really want rid of it, list it for cheap and take whatever you can get to pay some of your mortgage, and potentially look at moving your renewals to 6/18 months to eventually get to the top of the market cycle.

I eventually expect to get all the rents owed.

That’s also why a lot of investors eventually pivot back to long term rentals once they want something more predictable and passive.

I found a free monthly timesheet template that eventually worked great for me.