It's always best to find ARV for yourself, using recently sold properties, or comps, and adjusting those comps for features and amenities such as beds, baths, garages and pools.

I've just this year started staying at airbnb's that are not whole homes or apartments so it definitely takes some time to adjust having the homeowner around at times.

I am an independent insurance adjuster who gets hired by insurance companies to know how much a remodeling project is supposed to cost.

Be aware that the interest rate on that LOC is variable (typically adjusting each quarter), so have a plan (back up funds) to pay it off quickly if the rates go up too high too fast for your business model.

Once you find the deal then you can adjust the rental income and expenses to account for you living there.  

If you elect an adjustable rate deduct a point (roughly).   

If I cannot meet my minimum criteria I may adjust the Cash-out amount to reach the minimum.  

You can either work with an agent or adjust your settings on Zillow / realtor to notify you when one comes up in your criteria you set.

Even if you fail you'll find that it isn't easy to find a deal and that may help you adjust your thinking about what a deal really is. 

I would go line by line through each property to make sure they made the adjustments property (like condition, the garage you mentioned, etc).It's my understanding that the appraisers can only count legal sq footage, bedrooms, baths, etc.