Is it better to keep adding equity by doing work on the houses while I'm renting them then refinance to recover the initial down-payment to reinvest into another property or to pay down the heloc?

My recommendation would be to choose potential markets - in several price points - that have strong rental demand and year-over-year rent increases and that also are in markets that are appreciating. 

Not a strong argument ;-) I still had to pay off the loan to cure the DOS. 

If you're working with an investment brokerage, I'd recommend tapping into Tampa and Central Florida markets too—areas like Riverview, Wesley Chapel, and Brandon have been strong for both flips and long-term holds with steady demand.

Initially, our plan was to fix the drywall leaks, clean out the property, and relist it for a small profit.

When you hear something you don't understand - ask questions and ask people to explain their thoughts, haha, especially if you hear something that you initially don't agree with.

I’m reaching out with an investment opportunity in a real estate flip project, and I’m currently seeking a limited partner to join me.With a strong track record of successful real estate investments, I am looking to partner with someone who shares an interest in capitalizing on the potential of this market.

Diversity is great, but the fundamentals for real property are too strong in my opinion. 

Initially, our plan was to fix the drywall leaks, clean out the property, and relist it for a small profit.

A lot of my clients buy in Alexandria because of the strong rental market and laid back laws on short and midterm rentals.