Can anyone shed some light on this process?

Good morning everybody, I’m a brand new investor.

Additionally, I refinished the hardword floors, added new flooring in the kitchen, new carpet, refinished the kitchen cabinets, made over the pantry, new light fixtures, new countertops and kitchen fixtures and appliances.

Can someone shed light on this? 

Maybe I left the outside light on over night by mistake?  

Method 1 is much more certain in creating equity to then use on a heloc and method 2 is going straight to work... thoughts. am brand new to the area. very little if any SOI.

I suspect what you're facing here is too low of a rent but that's gut speculation, not math.If the rent proves out to be right for your area and the cash flow is still as light as what you describe, in a market like this selling would bring on significant equity capital for a more carefully planned deal. 

I remodeled an apartment and when the tenant called the electric company to put the bill in her name we found that her apartment is connected to the House Meter for the laundry room and outside lights.

For example, a brand new agent with no cold calling experience or skills learns a TON from a 60-90 minute training on 'using social media to get buyer/seller leads'.

This is why you need to check with a lawyer first.If the lawyer gives you the green light to evict, ask them about remediation.