How to get a of credit from home equity?

[Rob Grove]

Good evening everyone, 

I have a question about how to get a line of credit from home equity to use to flip houses or buy a rental. How do you do it?

Current situation:

I bought my first house in March for 209,900 with the va home loan. It's a 4 bedroom 3 bath split level with .40 acres that backs up to a creek and a trail in a pretty nice well established area. It was Solidly Built in 1979. I just got a grant for 10k to have new Windows put in which is awesome since the Windows were original wood crank outs. but we have to live here for 5 years or pay 20% for each year that we aren't here for whatever reason.

Anyway the house is pretty original with the exception of an on suite remodel, newer carpet and hardwood in the kitchen. I've done a few upgrades to the house already but for time sake I won't get into the little stuff.

Two houses On the same street with similar specs and condition have just sold this summer for 240k and 250k. I found another house not to far away for 260k with a little more modern upgrades but not a lot. My neighbor just redid his siding and Windows too which should help increase the value of my house. 

I'm thinking by painting all the trim, giving the kitchen a facelift, new light fixtures, and probably replacing the wood front with maintenance free like the rest (which will get rid of my wood pecker problem) and maybe a new front door or paint that, redo one of the bathrooms possibly both so all three are redone , I should be sitting  with a house in the 250-280 range. I plan on keeping this as a rental when we move so I don't want to go over board and this area isn't really a high end finish area that I've noticed but I plan on visiting open houses, watching for new houses the go up for sale to watch the local market.

My wife and I are pretty thrifty and I think we can get a lot done for under 5k

I don't know a whole lot (nothing really) about getting a line of credit from my home equity to  invest in RE but just the general idea. 

Do I just get my house reappraised and if it is more than what I owe, I can get a HELOC?

What is the normal home value to loan ratio that is out there?

Is this worth doing?

If my home reappraises for more then do my payments go up and is this just from taxes?

Is there any downsides to this?

Any links, tips, tricks or reading material on this would be great! Thanks!!