Eliminate debt, establish a budget, and save.

I'm a GC as well and did the math, the Heloc would save considerable interest because it would average on 33% of the balance borrowed at any one time (and thats assuming constant deal flow).  

.: Quote from @Theresa Harris: For your first question, how much will it save you on insurance and how likely are you to make a claim?  

MarketFinder: Helps you identify potential markets across the US that fit your criteria for investing and shows you this info below plus more based on zipcode, here's an example for a zip in Denver. https://www.biggerpockets.com/marketsDealFinder: Once you find a market you can dig into specific homes on the market at  https://www.biggerpockets.com/deals

Saving $10 to miss out on proper data that leads you to a $40k deal is not worth it. 

Thank you @Samuel Coronado for all the great detailed info! 

Others have little/no experience and will give you bad advice that takes you down the wrong path.I recommend you focus on educating yourself while saving more money. 

If they only make $2000 and know their income has to be $3000 or higher to qualify, they can apply elsewhere and save the $30 application fee.

Here's info on screening tenants here from BP - and a link to a screening partner.BP's Tenant Screening - Ultimate GuideGood luck.

Eliminate debt, establish a budget, and save.