Their CoC Return is 1.4% as they put a ton of money in (all cash) and this is what they make on return.That is not good.

I see what you mean about offering a higher return to a potential investor, especially if they are not familiar with my character/experience in the industry. 

Personally I think there are good loans out there but people look for the "perfect" loan that fits their buy box and meets a desired return - which the return is going to be based on risk.So for many you cannot have your cake and eat it too. thoughts?

Can you make a higher return than what the interest rate on the HELOC?

You will want enough return for the deal to support itself or you won't be able to scale well.

Within 5-10 years you should have been able to pull out your entire investment tax free and earn an infinite return. 

As indicated, I never had that issue due to the infinite return.  

Or at least what are investors looking for today as far as return and cap rates?

I would rather earn $2000 per month at a 12% rate of return than $500 per month at a 1000% return.

Starting local offers hands-on experience and control, ideal for learning the ropes, while out-of-state investments can provide better returns but require a reliable property manager.