That 95% makes sense as an appreciation return, but for true CoC, you’d need rent income factored in.

I currently have a pre approval and am shopping properties and am stuck on the deal analysis side of things.

Pick one that is improving, homes being renovated and flipped, vacant storefronts being turned into cool coffee shops etc.Good luck.

True wealth is in the equity!

These days too many people have too little coverage in case of a rebuild so you do want to make sure you understand the true cost of a total loss.

It's understandable to think a paid off property will "make more $" but it's just not true.

Virtually everyone lives somewhere especially true for those that pay taxes (in CA property and income tax).  

Shop LTV (or cLTV which is combined Loan To Value, basically your first mortgage and 2nd mortgage combined loan to value), rates, payment terms, time to close,  and draw period (how long you can go into and out of your heloc). 

Imagine investing in all new, beautiful finishes, only to discover that the drain pipes are faulty and need to be replaced—an issue that could have been identified and addressed beforehand." very true, sometimes it's like rolling a dice. 

I'd shop around that insurance policy as well.