Looking at the appraisal, it appears that there may be an opportunity to add value as some of the comps were adjusted downward. 

Maybe try and adjust the terms

HELOC, you should be good.As for the personal benefits, it depends on the totality of your situation, how much REI income you'd be missing out on as a consequence of the new job versus how much the new job will bring in after adjusting for paying out of pocket for benefits, etc.

I'm not an agent or an underwriter, so take this with a grain of salt (I'm an adjuster, other side of the insurance business).

. $200k in equity after intense rehab.

It is my experience that the rent seems to be higher than reality & the expenses need adjustment too.  

Experienced sponsors of these deals can provide attractive risk adjusted returns while you do what you do best in your day job.  

Since I tend to deal with basket cases I can usually safely assume that we are looking at all new flooring, for example, so on 1000sf I might mentally note $4-5k for flooring, and then adjust that after I walk the property - maybe all the HW can be refinished, or maybe there's a room or two that needs a subfloor/joist repair before we even get to the finished floor.

You could, as suggested above, get an estimate for a slight roof adjustment over the door.

The adjustable rates deter us from doing anything more than quick transactions with it.