Does anyone know if that is accurate for Alabama or are there any other avenues that I have not thought of?

HELOCs work great for cash reserves on rentals as well.It would be tough to accurately project your new rental property cashflows if your down payment came from a HELOC with a variable rate.

It takes a lot of time and skill to price a distressed property accurately, your essentially trying to do a real estate agents job and a contractors job all at once. 

@Tim Thorndike I can't answer your question specifically, but the CBRE Cap Rate Study for the first half of 2018 is a fairly accurate source of cap rates on a bit of a macro level. 

Just pointing out that the graph you choose to use doesn't actually support your statement..... your statement may be 100% accurate...... but the graph you choose doesn't prove that......

Those posted rehab numbers are certainly not accurate in today's market here in So Cal.

A good contractor will help you figure out more accurate costs for your detailed projections.

@Anthony Thompson  not lots but I got 3 more in the last day so just want to be accurate and informed.   

*Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)*Don't allow for your own independent property inspection*Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)*Require you to pay for any renovation upfront*Sell only in cheap. low end neighborhoods*Don't accurately represent the neighborhood/property classification*Don't have consistent rehab standards for all properties*Don't provide a scope of work for the property*Can't provide references of repeat investors*Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)*Don't allow for your own independent property inspection*Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)*Require you to pay for any renovation upfront*Sell only in cheap. low end neighborhoods*Don't accurately represent the neighborhood/property classification*Don't have consistent rehab standards for all properties*Don't provide a scope of work for the property*Can't provide references of repeat investors

Time will tell if my forecast is accurate.