You have to keep in mind that a plex will never be valued the same as an SFH, and renovations may not have the same effect on the value as an SFH.If renovations are not needed right now, I would work toward getting the rent to market for the as-is condition and then renovate each side when you have turnover. 

A question for everyone viewing the post: Would you consider HELOCs as a conditional strategy only reserved for ' great cash-flowing ' deals?

There are inconveniences to investing out of state like traveling to see properties, meeting with contractors, checking work, checking the property condition.

Refinancing next year would likely allow you to lock in a potentially lower rate than the 8% you're currently at, especially if the market conditions continue to favor lower rates.Avoid Duplicate Fees: You're right in thinking about avoiding duplicate fees for the refinance and HELOC.

@Mike Dymski, in my experience raising institutional capital early in my career, I would disagree about "following a sponsor" for years, and actually many of the deal level analytics (a majority of institutional investors invest in funds not deals), but your point is generally correct.Ultimately, what I see a lot on these forums is that a lot of people are relying on the investment manager to also educate them on macro economic conditions, which will always carry a natural bias towards their types of offerings.  

The lease states the tenants are accepting the unit in its current condition.

You'll likely pay high premiums, face lots of claim denials due to "pre-existing conditions", and deal with service delays.

They're spending tax-payer money, so they'll cut a check without batting an eye.Document condition before and after with photos, inspect regularly, and you should be fine.

I have to close, apply for a conditional use verification, get inspection ( requiring wired smoke detectors, other safety features) and get a business license.

You may need to spend every cent they offer on moving things out and back in, but that a small price to pay if after this is done you have your property back in the condition it was when you started.