Seeking Refinancing Guidance

[Lucas A Davidson]

I posted last week with woes regarding lending - lenders only were wanting to grant 20 years, in short.
Deets:

1. House was purchased for 62k. I had to put 0% down. In all, I'm about $3k out of pocket in this deal.
2. I did approximately $38k in remodeling. The house went from wildly outdated (hadn't had ANY updates since early 70s) to essentially a Pinterest home.
3. Estimate it will appraise 135k-160k.
4. 3 beds, 1 bath, around 7 blocks from one of community's biggest schools and best parks. Approx 10 blocks from downtown. Has decent yard, full unfinished basement, full "third level" of storage, huge 2 car garage, big shed. Awesome neighbors. Big, new deck.
5. Rent will be $1,100, $150 app fee, standard 3x income and checks (for reference, most rentals in my town are horribly run down and owned by slumlords and around $600-700 - this is part of my vision...changing the norm to modern and more beautiful, but stricter requirements)

So I had a local bank call yesterday. 
They want to use Freddie. 
Option 1: 30 year, 3.625% rate, approx 71% LTV, I'd have $2621 in fees (can be escrowed) and closings
Option 2: 30 year, 4.5%, approx 71% LTV, NO FEES.
In both deals, I am opting for lines of credit vs cash outs. They told me the cash outs would have considerably higher fees and I'd net about $17k. With a LOC, they told me I'd get approximately $55k.

My question:
Knowing I'm around 25-30% of my DTI (before any Realtor income! This is from my day job), and my overall goal is to BRRRR:
1. Does it seem low because I'm $0 in this deal?
2. If I use the $55k on another property, I would need it to ARV around $75k to get 100% of its value refi'd, correct?
3. Will I "hit a lending wall" if I continue to BRRRR? It feels like it.

Let me know your suggestions and questions! I hugely appreciate everyone's time and knowledge!