These updates modernized the property, improved its curb appeal, and significantly increased its market value.

It's in a part of town that is being revamped from former industrial to nice stores, shops, restaurants, and businesses and I believe there is even some money offered to help revamp that part of town if you purchase something and help improve the area.  

You can do a ‘cash out’ refinance on the rental home as a permanent fixed 20-25-30 year loan to pay off the Heloc on the primary and most likely the equity line on the primary permits a ‘re-draw’ to utilize again. 

I regret every property I sold 10 years ago (except the ones in the hood, that was a short term experiment I am glad I got out off).Your total net worth contribution is a lot higher than 0.6%, just the paydown of your loan is double digit ROI.

The new builds in the outskirt towns are fine and if you buy with a primary loan, you can get a great interest rate.

You cannot exchange into improvements on property you own. 

The new investment earns $24,000 a year, but the mortgage + the equity loan cost will be $22,332—and that’s before you account for taxes, insurance, maintenance, capital expenditures, vacancies, etc.

I had made a few basic improvements to the lot so my tenants could park there and the developer who controls the ROW is making me get rid of the parking “as it detracts from the appearance of the entrance to his subdivision”. 

Our goal is to purchase a new construction home as our first investment, with plans to acquire four more properties in the next three years (4/2 around 400k with 25% down dscr loan) .

The cash flow will improve due to the typically fixed rate loan.