Using HELOC to BRRRR

[Jeremiah Robison]

My wife and I bought in an up-and-coming neighborhood just three years ago, but now have 130K in equity almost entirely from appreciation.  We have solid jobs and a small emergency fund.  I am interested in deploying our equity so that we can generate cash flow.  Real estate in Charlotte, NC is getting expensive fast, but this is what I would like to do:

-Open a HELOC

-Buy a distressed property (one that will qualify for a loan but still needs work)

-Utilize HELOC for the down payment and for repairs

-Rent

-Complete a cash-out refinance for the forced appreciation

-Pay off HELOC

-Look to repeat

Here is the rub:  My wife is very risk-averse, and I think the best risk mitigation is to "buy right", but I don't know how to do that without doing a direct mail campaign. I am also concerned realtors might get annoyed at me trying to find a property at 25% below ARV Less Repair Costs. It might take a while in my area.

Does anyone have any recommendations for me?  As a first time investor, how do I efficiently "buy right"?  Will I drive off quality realtors trying to find a below-market deal?

Thanks for your insights!