(D) You could look to generate more cash flow from a small plex unit, where you occupy one unit and rent the others out, and improve over time.  

Sure there are times you may need to get tough, but that should be the exception, not the rule.. read your lease  understand your local laws, and remember this is your tenants HOME (expected right to privacy) Also, in the states where the laws allow, I would be careful that walking onto someones private area would get you shot.

Obviously this doesn't make the 70% rule...Built in 2006, 1200 sq. ft. in a B- neighborhood.  

You might also want to keep an eye out for certain cities that have planned large improvements such as new schools and stadiums as they will spike up the tax rate in a higher percentage than typical.

(yes I spelled it like I got asked) My reply to them was that they do not make 3x the stated need of verifiable income if you need "housin" thus you did not even read my rules for application.

I'd safely rule out item #3 because you leave whatever equity in the property and this takes the longest time to refresh your cash/credit pool.

I think HELOC is tax deductible for up to $100k on primary residence’s home improvement.

Also note that you have to improve the property, land, etc. so if you purchase a home or business for say $10,000 you have to also put a minimum of 10K into it for improvement.

Shall I just ask her to send the bylaws and HOA rules or shall I ask her to order the resale package to send me?

Of course, you need to first check with the rules and laws that govern your responsibilities as a landlord.