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.

My mortgage balances sometimes do not update if there’s a website communication issue, but you can always plug the numbers in manually and it will still do the calculation.  

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.

If you will be living there, you should adjust your monthly gross income to reflect that. 

I paying 7500 on a 78k property.  2500 of which is a loan level pricing adjustment which is something dictated by fannie mae.