Of course put on 5% + REFI debt.

I hate debt in all forms there is no good debt to me... other than construction loans 

BUT If I if I buy a place for $100K, force appreciation to $200K and refinance it for $200K aren't I assuming an extra $100K in debt?

I’d like to pull out a HELOC on my property to pay down some outstanding debt and perhaps close my first rental deal.

The lender wants to know worst case there will be enough cash flow to make debt service if you can't fully lease up the project right away.Usually a buyer ties up the land for 6 to 9 months before purchasing to see if they can get their project approved and advance commitments from some tenants for the spaces before closing on it.

Net Operating Income2nd is cash on cash3rd is cash on cash + principal from debt service

They'll be investing that money at the same time, so they make a worst case assumption on what they think they can make in the debt markets.

While cashflow is my ultimate goal, I may need to do a few flips in order to restore capital and pay down debt (BRRR likely won't work on this first property, at least not for another year+)@David Clinton III Next time I'm in town I'd love to pick your brain and see what value I can drive to your portfolio. 

We are all fluent in Spanish, and know that immigrants tend to work hard to repay debts, including rent.

This way your equity even is giving you a return.Once your portfolio reaches critical mass, or you hit your target numbers or cash flow you can transition over to paying down debt to prepare for the final distribution phase.However, people need to retire, or go full time, at some point this is called your distribution phase, so when that time comes be sure the properties are paid off by that time to maximize cash flow in retirement.A great book on this topic and more is Gary Keller's The Millionaire Real Estate Investor.