Thanks to everyone who offered input, seems like the smart choice here is to save more cash without getting any more leveraged! 

A lot of choices for this too.It's very uncommon for the mixer valve housing to go bad (they can leak but don't often break)The joys of home ownership...

It’s also a good look being proactive and taking these steps early - it will build your credibility with them.I saw Chattanooga is the area you’re wanting to invest in - great choice!

I started looking into Chicago IL because multi-families are quite popular there and its a pretty hot real estate market.However, this would be my first property.

I would stack my money up, and purchase a few of the popular BP books that @Brandon Turner has written.

@Benjamin Papet the primary purpose for BRRRR is to help build your portfolio so the refinancing step is intended to accomplish a couple things: 1) affords you with lowering the cost of debt and 2) most importantly, it provides you with the funds for your next deal, hence the "repeat" step.There is a delicate balance with how much debt and leverage you should have so that is a personal choice based on your affinity for risk and how much reserve you have.  

You see I have a choice whether to self manage or to hire a managing company. 

I bet if you keep pushing with local banks, especially those popular within your local investing community, you'll find one that does HELOCs on investment properties.If not, or perhaps even if so, you could always do a Cash-out Refinance with a lender and have a permanently amortized loan that get's you the cash.  

This wasn't our first choice, but the Boise market is tough.

House hacking was my goal initially but if you're going to do it in the OC you have to know what you will be getting yourself into and make your choice.