You mention that with minor improvements (within your $5500 rehab costs??)

Need to improve my systems and have a better checklist for estimating repairs.

Here is the information for you to read, it falls under "builds or improves for resale or speculation" https://www.dli.mn.gov/busines...MN DLI requirement are for general building including pulling a permit for an egress window or any general building permits. 

After a year we refinanced it to improve the cashflow and I had to replace 2 hvac units and remodel the entire back apartment.

I am willing to take more risk on commercial if I have solid strategies for improving NOI.

A part of my plan is to perform a cash out refinance to improve my ROI, purchase a new home to perform a live in flip and rent out my current house. 

Live in flip can work here but I have seen many DIY "improvements" in Moreno Valley that harm the long term prospects for the home.

Are there any other factors that could improve her application?

My strategy is to use the HELOC purchase single/multi-family properties under market value that need repairs and renovation, make the necessary improvements, then refinance into a Mortgage (with forced equity), and rent for cash flow.I'm originally from the great state of Colorado, but have been living in Nashville, TN for several years now. 

I am a very driven individual with a big focus on self improvement.