If you don't have funds available elsewhere that would make more sense to utilize and are able to obtain a HELOC for the renovations I don't see why that wouldn't be ethical.

If you utilize all of the benefits (rent redi, $100 credit for Baselane account, Home Depot account, state specific leases for free, probably others that I am missing), it is worth it.

I help clients utilize this financing strategy all the time for their vacation homes/short term rentals. - Is it feasible to use current home equity to purchase/renovate?

Site grades, floodplain, and utilities would be at the top of the list that impact the cost of 'physical' improvements. 2.

Texas metros once again attracted a disproportionate share of these renters thanks to:Low or no state income taxWarm climate and lifestyle appealHigh-quality rental inventoryNotably, millennial millionaires are far more likely to rent than their Gen X counterparts, signaling a generational shift in how wealth interacts with housing decisions.7.

On our properties, tenants pay all utilities and handle landscaping, so there’s no financial advantage to you paying these expenses.Finally, townhomes typically have shorter tenant stays, which leads to higher vacancy and turnover costs.

does anyone have any ideas on how to utilize that space that would increase STR traffic/profits? 

I utilize agents in cities/states where I am interested in investing because of the added benefit of their market expertise.

Here in Maryland it just made the news we have the highest utility rates in the country .

They pay my desired amount of rent and all utilities.