Being that you're borrowing from your 401k and considering an equity line, I would suggest you don't over expose yourself by buying two properties at once.

Typically a seller will reject that offer on the first day figuring that the property has not been exposed to the market enough yet and there might be a buyer who would pay more.

Most prefer to avoid this cumbersome process as can be lengthy and expose a simple sale between parties to overbidding by 3rd parties who get wind of the court sale. 

Good suggestionOn one of my first rehabs I had an issue relating to major unexpected deficiencies in electric and plumbing systems that were exposed in demo and not in the budget. 

I would decide about whether to expose the floor based on the condition of the carpet.

While I do understand your preference to keep rentals outside of retirement accounts and take depreciation, active investments can expose retirement accounts to UBI tax and possible prohibited transactions.

You're increasing your exposure to the real estate market by using a HELOC to finance an RE investment (beyond the exposure you have if you just have your primary residence + an RE investment) - if you're stable enough to add the risk, that's fine, but if a huge portion of your investable assets are exposed to the real estate market then that could be a massive issue in the case of a market downturn.

There is volatility in the business and having only one house exposes you to that volatility.  

I still have some cash left over, but clearly I'm exposed to the real estate market.

Listing the property and exposing it to the market may take a little longer but will always bring the highest price.