One last question to end on : What do you see on the five-year horizon for the Austin REI market -- i.e. small corrections to pricing trends, large pricing crises, or continued rise in value?

Also, does it warrant it at this time, or any specific time over the investment event horizon. 

I would rather my money was working for me all the time and not just some of the time and if that means I have to do some work to make that happen then so be it.This could be seen as flipping but the time horizon for each deal is different.

I've read a lot about having a three legged stool approach as a way to preserve and grow wealth involving a hedge fordeflation (depression, falling prices)inflation (status quo, slowly rising prices)uncertaintyIt would seem to me that we have two additional possibilities on our horizon due to our federal debt levels:stagflation (steady prices for extended time.  

Atlanta is on the upswing so definitely take advantage  of all the opportunity on the horizon.

If your time horizon for the Bay Area is not that long, though (which sounds like the case), then that doesn't really matter and you are probably making about as good a choice as you can as nobody really knows for sure what the next 6-12 months will yield.

Im looking at the horizon way out.

If you can't come up with a clear answer, don't take the shot.With each shot, check to be sure your horizon is level. 

If you use your HELOC as short-term funds to acquire and cash-out refi when your done with your project, you are only using the funds you need and with a short-term horizon in mind.  

Account Closed, 85% LTV at 4.6% is very good, just make sure that prepayment penalties, if there are any, are relatively small, or the schedule of them coincides with your time horizon for the property.