Hello BiggerPockets,I'm seriously thinking about using Home Equity Investment (HEI) to become debt-free, but I want to make sure I understand all the details before diving in.

Rents will need to increase to keep up with the increase in property tax, insurance, maintenance cost etc.

With insurance costs going up, construction, etc., 5% might actually be high in your estimation. 

I normally feel like it'd be a no brainer to get a HELOC and use it to invest, but with rates and housing costs, I wasn't sure if it'd be worth to use on the primary.Appreciate any response, just wanted some insight on what other's though.Kindest Regards.

Insurance probably sent an inspector who gave a ballpark repair cost in addition to the cost estimate the clean up company provided.I'm assuming you used the clean up mitigation company the insurance suggested, who may not be your best choice.Get another estimate to return the property to full glory, cost for paint, glue, dumpsters, every nitty gritty drywall screw, plus putting your tenant in like kind housing.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

Feel free to hit me up if there's a way I can help!

The costs of land  , engineering , site work , permits , labor , and building materials make this virtually impossible . then there are zoning issues and the rest of the politics that go along with this . 

I used to have several out of state investors who would buy houses in Memphis via the online tax sale auction, then hold them for a year so the redemption period ended, then they would hire an attorney to "quiet" the title which would take 4-6 months and cost roughly $5000 but then they had clear title and would sell it "as-is" to other investors or hire me and list it on the MLS and get higher offers. 

>Seems to me that at scale, a portfolio like Luka's would indeed build wealth over timeIt is cash flow negative in a market that has an appreciation rate (2.17%) for this century below the inflation rate.https://www.neighborhoodscout.com/oh/cleveland/real-estatehere are some thoughts about your plan: - why perform a value add in a market where the value add does not add much value especially if the property will be acquired at no cost?