The cash flow borrowing full cost via heloc will be marginal, possibly even negative if using realistic expense estimates (I.e. something near the 50% rule).  

Focus on potential profit margins and market trends.Be Local: Understanding micro-markets within these neighborhoods can mean the difference between a good flip and a great one.Network: Partner with investor-friendly agents, contractors, and wholesalers who know how to find and secure off-market deals.Nashville's real estate market continues to thrive, and these neighborhoods are at the center of the action.

Hence my take on CA; pricing is way too high and margins way too tight for the risk at playing the loooong game because I simply don't have faith in CA's actions, or better said inactions, for the loooong game. 

Thus, your profit margin is lower (than the all-cash offer), but your ROI is higher.

I'd minimize the risk of having negative cash flow in the first 12 months when things are the most unknown and I'd be able to increase the gross rent of the property which should give me a better loan or at least bigger margins to cover my risk for negative cash flow. 

As someone else mentioned, what I've seen a lot of in the past six months is deals that don't have the rental income to service the debt and borrowers with marginal credit.

Quote from @Henry Lazerow:My guess is most of the deals selling go to newbies who have no idea what a rehab really costs or that once you open the walls the costs often go up 10's of thousands so you need a solid margin to make money. 

Unless you're direct to a seller, you'll often find yourself with tight margins which equates to losing in the end.Here in Texas, I’ve gone through hundreds of deals this year and maybe half a dozen deals were worth the investment.

While they do eat into rental margins the larger profit came from the sale and the added rental profit was not worth the hassle of being a landlord.

The ceiling height of the basement is only about ~6.5 feet, so it's really on the marginal side of livability for most people.