Sara,I see this a lot and I always ask if you know you are going to refinance in the long run to consolidate the Heloc why not just do a Cash out refinance instead. 

Purchase price: $850,000 Cash invested: $500,000 Sale price: $2,250,000 Purchased , knocked down, built new from ground up What made you interested in investing in this type of deal?

Purchase price: $260,000 Cash invested: $120,000 Sale price: $535,000 Complete gut, new front and rear walls, all new electric, HVAC, plumbing, roof, deck, windows, interior What made you interested in investing in this type of deal?

Purchase price: $5,000,000 Cash invested: $1,450,000 Complete combination and gut of two lofts side by side resulting in a 4,000 square foot home.

Personally, if I can hold with a little bit of cash flow but good upside appreciation over time I’d prefer to hold.

Understand how to "add value" to the property and evaluate cap rates, IRR, cash on cash returns. 

Do you have a current need for that cash flow generated from the tax savings?

If you're open to expanding your search, Columbus OH also has positive cash flowing deals at an affordable price point - $120k-$180k. 

Eventually, I’d like to start using the cash flow to pay myself and work toward replacing my day job income.

Many of my customers who are traveling nurses buy condos or townhomes in Florida as vacation homes, then rent them out when they're not in town.This system has proven to be very lucrative, as it allows them to service the mortgage debt and generate a good cash flow.