Is this enough equity?

[Traci Thomason]

I am under contract for a primary residence. This will be my 3rd property in my portfolio currently and my 4th purchase overall. I do a buy and hold strategy and bring in long term renters or student renters. I am buying this home because I currently live in an open loft and want to reduce my living expenses so that I can invest more. This next home will be the same amount monthly (because no HOA) but it has 5 bedrooms so I can move in roommates or family to cover the bills. The other benefit is that I want to take a HELOC on this new home to purchase another investment. This home is a totally gutted renovation in a up and coming area. Purchasing at $210,000 and renovation is estimated to be $175,000 which makes a purchase price of $385,000. I expected the home might appraise for $450-460k, however it appraised for $412,000. This is too low to obtain a HELOC anytime soon, and I am feeling like I get no benefit from the equity here until I sell it (in many, many years). So I'm wondering if I should just buy a cheaper home with the same amount of bedrooms but save myself the stress and risk of a renovation that I can't cash in on quickly.

Would you still go for this deal?

Am I missing something here?

How would you think about/analyze this?