You can see if their coaching/personality style speaks to you. 

What would be the most suitable approach for someone like me who has no starting capital?

If having accessible funds is a priority, a high-yield savings account might be more suitable or S&P 500 investing. 

The single payment will cover both the original loan amount and the additional cash-out amount.HELOC might be better if you need intermittent access to funds, while a cash-out refinance could be more suitable for a one-time need with a clear purpose.

For example, get electrical up to date first since its a 1963-style ranch house.

Both are active style of investing so note that there's a big learning curve either way.

The reason why I do it this way is because I do a open house style, for showings. 

Houses would be Dwell/Ikea style with a progressive and educated market.

The adjustments made are based on Marshall Swift cost guidelines for the geographic area, a fireplace might be stated as $5,000, but the style, design, quality of materials, workmanship and even size (like a 6' open stone fireplace with 200 pound stones) is a matter of opinion.

(That's not my style, but it is what they chose.)You win at "Specific Performance" if the other side walks.