Monthly rent in the ~$1.5/sqft range.

I have seen the cost to file for a syndication range from $ 25K to $100K.  

unfortunately in the investment world you'll be more in the 25% range consistently 

The simple calculation is the money that goes into the improvements does that give you sufficient return on the sale?

You can find some great deals in a B class area here in Chattanooga. 3/2's in B class neighborhoods range from about 200k-235k.

What price range would you be targeting on the new investment property ?  

In May, as in the previous three months, the growth in homes particularly priced in the $200,000 to $350,000 range outpaced all other price categories, as home inventory in this range grew by 46.6% compared with last year, surpassing even last month’s high 41.0% growth rate.

Generally a HELOC is second position and might have seasoning requirements (ownership of 3-6+ mos) you would need sufficient equity to essentially 'recapture' your down payment. 

They typically have fixed or adjustable interest rates, terms ranging from 5 to 20 years, and amortization periods of up to 25 or 30 years.SBA 7(a) Loans: The U.S.

She makes about $35k/year, but after inquires to multiple banks, they are saying her income is not high enough to pull out sufficient equity.