There was limited money left for making improvements. 

Good thing you can make tons of small tweaks to your kitchen to improve the overall aesthetic without having to spend thousands.

Homeowner decides they don’t want to sell after the repair/improvement work is done2.

When starting out, but owning an entire property outright with added improvements, would it be better to cash-out refi or get a HELOC? 

It may even improve it since you wouldn't have to put your business transactions on your personal cards anymore.

These markets often have lower competition and can offer higher cash flow potential.Midwest and Southern Markets: States like Ohio, Indiana, Tennessee, and Alabama often have lower property prices and can provide better cash flow opportunities, even with higher interest rates.Value-Add Properties: Focus on properties that need significant renovations or improvements.

I made some nice curb appeal improvements, added parking spot rentals, added the U-haul dealer, improved internet presence, advertised in local papers and are affiliated with MySpareFoot.

@Mohit Arora recommend you spend more time studying TX landlord-tenant statutes.Your lease is probably pretty basic as it didn't really cover this issue - and it probably doesn't really cover a whole lot more.Google & download as many TX leases you can find to copy & paste to improve yours.

strictly read, the city of Austin requires a permit to spray foam insulate around an outdoor water hose bib...because it improves or repairs a structure.  

My suspicion is there is ample moisture and you need to improve air circulation or determine the cause of it.