(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.

I eventually expect to get all the rents owed.

I definitely think it is easier to get financing before converting to a PadSplit or use private money from people in your network.

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.

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

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

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

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.

In a last ditch effort to try and save a property a DST can be converted to a "swinging" LLC.