I would coution you though that HELOCs usually have a variable interest rate and due to the change in tax laws you might not be able to write off the interest from the HELOC unless you used the funds to make repairs/upgrades to your primary residence.

.- Item 7a2 Termite to be removed from contract- Buyer is aware that the apartment above garage is not permitted- Seller paid Home Warranty not to exceed $500 (Our agent originally put in $685 for an upgraded policy since we saw the pool equipment leaking.

The city required the former landlord on one of my properties to upgrade all the electrical boxes when they installed underground cable.

Plus, you're starting out $40k out of pocket (DP + upgrades), which means at the end of the first year alone, you'll be about $40k behind...as in out of pocket...as in an $40k loss... 

seismic upgrades?

I had one just tell me I couldn't opt for the upgraded shingles because my insurance wouldn't pay for it and he didn't get a bulk discount to buy the shingles that I want. 

Such as upgrading to a 1 horsepower garbage disposal when a .25 horsepower one is having issues ?

So after I do some upgrades/updates and the value goes up, how do I refinance and pull out cash for my next investment?

Cosmetic upgrades in the bath would work for rental, not for reselling now or in the future, so to get the full AVR, they would need a full upgrade now or later. 

I have spent a lot of money upgrading old plumbing, but know that no appraiser takes in into consideration when they do their 10 minutes walk through the property.