Hey Jon would recommend checking out FB groups if you aren't local (looks like you're based in the Bay).

Andy Sirkin, based in San Francisco but supposedly has done some in Las Angeles. 

Do you know what you are doing based on actual practical hands on experience?

My wife and I have obtained three traditional loans and one lease with the option to purchase, resulting in most banks turning us down based on debt to income (non-portfolio lenders). 

Sounds like you are going with a Fannie/Freddie type loan based on the cap of 2%.  

Generally yes a HELOC will go off your personal finances so qualifying is generally based on your income, liabilities, and credit. 

I am local to Los Angeles - based in Orange County.A bit about me: I’m a civil engineer by profession with experience in local government.

I would need to consult tax consultant for this however I expect to reduce my effective costs by ~$1,495/month (based on a 32% tax bracket).2.

All Texas based. 

Tenants were ecstatic that I have been fixing things that were neglected for years and based on units in Clinton trading for about $200k a door, the property will likely appraise for 750k+ Lessons learned?