increase value for HELOC?

[Joe Boggin]

helocs are usually 80% LTV correct? i found a lender who would do a heloc on my rental property i own free and clear, not my primary residence...they will only go up to 50k and DTI is flexible (around 50% with top tier credit) with a 10 year draw and a 15 year repayment.

how to they determine value? if its a local bank will they send a guy to walk through and nit pick to crush the value? my property is in an area where homes sell for 45-70k. but my property could use some cosmetics. the kitchen could be updated and painted etc....not sure how the determine the value because after all the value is a huge factor in determining what you will get approved for? should i spend a couple grand to enhance cosmetics before i apply? should i look for out of state lenders who rely on comps?

im just looking for a 30k HELOC. and i figure i would get a better shot at getting that approved if my house is valued at 55k and not 40k?!