Get HELOC on primary for debt and/or emergency fund.  

You do not loose any data, as long as your QuickBooks is set up right and you have a process and procedure to record the transactions.So let me ask you a questions, say you post it to COGS - and I ask you what your profit is for this year. 

Review the contract for terms and procedure for default, if any are written.8- Keep a copy of their refusal to complete the work as Contractor Default, keep the final $5k as contractor default.9- Pay the new contractor to fish the job, let the Old contractor deal with trying to get the last 5k from small claims court, which they will likely fail to achieve.PS yes I blew past “what if permits are not signed off as complete” thats a PITA of its own thread.

Can anyone guide me for REO foreclosure list and how is the procedure here?

As long as you have reasonable expectations of:- Running a 24 hour business (mostly remote but guest communications and emergency maintenance issues)- Managing cleaners (schedule and quality)- Managing maintenance (urgent and scheduled/preventative)You will be fine.  80% of the work is remote, with the exception being cleaning and maintenance. 

As a new investor I am working to find the right balance of allocation towards Vacancy, Capex, Emergency, etc.

I would save up a small emergency fund of a few months worth of cashflow for smaller capex and to ensure you got your calculations right and there are no unexpected expenses 

You can find some value here in C-class properties since there are emerging B-class areas in these towns.

I do like having a HELOC for an emergency fund. 

Looks like Oregon has strict laws about notice and cause for termination, so you may want an attorney to advise you so you’re following proper procedures.