Sounds like in your situation a cash out refinance would be the better option since it is less risk and you can get a lower payment/rate verus a heloc.There is a lot of issues than can arise with a Heloc which is the same as a credit card verus liquid reserves tax free cash in hand that can be used as an asset for PITI reserves or collateral in general for compensating factors in underwriting or rate/term qualifications.I enjoy helping other BP members save more time and money I say it a lot here on the BP forum but its super helpful to avoid mistkes and lost deals as well.  

Other money traps:  guaranteed rate of return passive investments with no verifiable collateral, investing in social media syndications, spending thousands on impractical asset protection trying to achieve anonymity.

For 2025, I like a barbell: keep buying solid, cash‑flowing rentals you’d hold through rate swings, and allocate a slice to well‑underwritten, collateral‑backed notes.

On this unlike pre plat deals we had more security in some cross collateral and the Lennar contract ( plus I personally know the Head of the Oregon division on Lennar so could go right to the source for verification.

You can cross collateralize and buy more units with ZERO cash input.  

It would be more ideal for us to find a buyer who can carry the builders loan vs us, but we have already talked to our bank about it and would be able to use a heloc to purchase land and then our current home for collateral.

For steady note flow, stack a few lanes: trade desks at small banks/credit unions and regional servicers, direct from creators via local REI meetups and Facebook groups, seasoned wholesalers who pivoted into notes, and vetted marketplaces that let you filter by performance, collateral, and pricing.

In some instances, you can get higher LTC but that will be dependent on borrower and collateral. 

If you can't get a refinance, can you keep the property 100% paid off and maybe use as collateral for a future property.

On the sell side, use a clean amortization schedule, specify which payment block you’re selling, set a minimum seasoning/credit box, and include a substitute collateral or buyback option if performance dips.