im located in California, is it possible to pull off brrrr out of state? 

Not sure how often mother nature requires claims to be filed in this part of the country. 

I don't think you are fully comprehending the BRRR method, yes it's more capital upfront but your are pulling it back out.

@Allan Anderton You would refi so you can pull your cash back out to reinvest into the next deal and continue to recycle your capital over and over again to ultimately grow your portfolio.

My logic with the HELOC is that I can draw from it - purchase a property, pay the HELOC down and keep a higher cash flow on that property vs pulling cash out.

Would be fine to do if you wanted to pull your cash back out.Good Luck!

Should we cash out refinance out primary residence to pull more cash out or should we just use own cash reserve+ HELOC for next down payment and any extra fees?

Tax specific questions are determined on the nature of the project and the sophistication of the Sponsor.

All too often, people get caught up in analyzing and over analyzing deals or plan just getting nervous and never "pull the trigger". 

My concerns are possible disagreements on refinancing and pulling out money, or when timing to resell..