This is a whole lot of money to spend just to pull out about $50k.I have some private money loans I would like to extinguish and I have other opportunities that I would like to pursue, which is the motivation for releveraging.In the alternative, if I wait a few months I can get an 8% 10yr HEL (fixed) or a 6% 25yr HELOC (variable) from another local bank with no closing costs.Am I pursuing a bad deal?

There are so many variables and market changes etc. in real estate that if you are pursuing some panacea in real estate proficiency, I doubt you will ever start investing. 

Purchase inexpensive homes $5000-$20000 (I have an inexhaustible supply of these kind of homes they are not junk they are totally livable and not in need of repairs.

There are a lot of variables, including state and local law and whether or not the occupant is really the borrower or a bona fide tenant (or family member of the borrower).

I couldn't agree with @Amit M. more about the variable rate financing aspect, along with the differences in vacancy, especially if you have a single-tenant building, large single space, or unique building.

First issue is that they are not trained to the level I would require to bet thousands of dollars on, secondly I would never trust the assessment of value supplied by a seller.

If it were me, I would do the following:- Remove the fake soffit above the cabinets - Free- Get new 36" Cabinets from Partners Home Supply (includes island and crown moulding) $2,000- New Countertops Granite Includes Undermount Sink - $1,200- New Appliances - $1,750- Tile Backsplash - $250- Tile Floors (In Kitchen) - $300- New lighting - $150- New faucet for sink - $75Total For Kitchen = $5,750As for the bathroom - New tub or shower pan - $350- Tile the walls - $270- Vanity Cab from Partners Home Supply to match kitchen - $110- Granite Top for Vanity - $150- New faucets and shower head w/ diverter and tub spout - $150- New tile floors - $100- New toilet - $150Total Bath = $1,130Total Renovation = 6,880** If you're not capable of doing this work on your own, most of it is quite easy.

Brandon, nothing more that an asking price is needed and that could be listed as "Make Offer".You never use a pro forma provided by a seller or listing agent other than to see what fixed and variable costs by item are involved, then you begin to verify the numbers to see what they lied about. 

@Julia BlytheI've purchased from there before and the unit is warrantied by the manufacturerIf a warrantied part goes bad, I can have my HVAC guy take it to a supply house that sells goodman products and get a new part I've found that acwholesalers is oftentimes cheaper than the supply houses or that they will match the price of acwholesalers acwholesalers also sometimes has coupon codes you can enter to get 5-10% off

Since there are so many variables involved, including a lot of unknowns (especially for repairs), squeaking out a small profit on your first flip is a big success!