As an aside, insurance companies are inspecting most properties one way or another in the current market. 

Today after making improvements to the properties it generates over $2,300 per month in cash flow.

HELOCs typically do not go above 75-80% of value and since the property was purchased recently they would not see that equity unless you did some major rehab to the property.

Why not save more money and look at higher value properties?

You really don't need that LLC until you pay off the property and it's questionable if you need it then as long as you maintain your property and have correct insurance.Yes to wind insurance, not sure about hurricane.I use Foremost STR policy for one property.I am about to switch to USAA (retired Navy) for another because they quoted a policy that was 3k lower than what we have.

I own a home and have one rental property in Southern California.

Phoenix has a pretty diverse market, and while there’s no official A/B/C/D breakdown map, you can generally categorize areas based on price points, rental demand, and appreciation potential.For BRRRR, you’ll want to focus on places where you can still find properties at a reasonable price, add value through renovations, and get solid rental returns.

Be careful when you start thinking other sales will equate to the same numbers for your property. 

Yes it's hard to price this out without knowing the property details and what grade materials you’re using etc. 

As you alluded to, sometimes a passive note investment purchased for monthly payments “goes south”, and becomes an active participation investment, with plenty of additional capital required for legal fees, forced place insurance, and property taxes.