Another thing to look at is the material being used.

Granted maybe Ohio is just that much cheaper than Wilmington, Delaware...and/or you're planning to do all the work yourself and just have material expenses...but if you've never done the rehab before I would seriously question that $20k number. 

I was wondering if anyone could give a general breakdown of what a C2 property means or if anyone had any helpful reading material.

The materials alone for commercial services have increased significantly in recent years. 

Who said he ordered the material for the rehab but still has not produced it after weeks of saying he did.

In short, goals:1) pay off $25k credit cards balance2) get some reserves around $10-15k(for materials) to finish renovation primary3) if anything left, maybe get some cash for down payment for another rental property So I am trying to choose between Cash Out refi vs HELOCI found two local banks that offer HELOCS on investment property. 70%LTV prime+2%(2.25%), got to pay $500-1500 closing fees.Same banks offer cash out refi for rental properties: 75%LTV, 5.5-6% 30 year fixed, 3000-4500 closing feesSeems like, if I go refi I can pull out around $83k ($105k(new loan) - $18k(current mortgage) - $4k(closing fee)=$83k $83k - $25k(credit cards) - $15k(to finish rehab) = $43k (for next investment).I am still researching and shopping around for other options, but refi seems to be a better option for right now. 

In terms of #2, is there no tax consequences because the transfer is being made in a way that doesn't materially change ownership of the underlying property (it's 50/50 owned by two people and transferred to an LLC that is 50/50 owned by the same two people)? 

I keep all my tools and extra materials in whichever unit I'm working on currently.

I do most of my own work, so If I buy a house that needs new paint and roof, I'd be paying less than half of the repair cost just in material... and keep what I would pay a contractor... or pay a seller because they just paid a contractor.  

Most of the time you can just kill it with bleach(non-porous surfaces) or throw it away (porous material like drywall).