Just make sure you have enough equity to pull this off.Talk to lenders about their HELOC terms and conditions.

Would it be best to leave the equity in the rental at this point considering the market conditions or shoot for a cash-out refi?

Find out what their terms and conditions are and work backward from there.

Our deals are conservatively underwritten and the operators that I work with turn away a lot of good deals to find the best markets, deals in those markets, include a margin for unforseen market conditions. 

From there, potential additional revenue opportunities can be identified.Unit Conditions and RenovationsUnless the property in consideration is a brand-new complex with new systems and appliances, it is critical to an investor’s forecast to understand each unit’s makeup, i.e. flooring, types of appliances, countertops, etc., and condition.

On a similar note, the house will be rented at the time of appraisal, ideally the renter will be keeping it in good shape and clean but has anyone used any specific tips in the past to ensure the house is in the best condition possible for the appraisal?

The extent of those was based on overall condition of house.  

In normal conditions that wouldn't be a big problem, but you should be getting a discount on price for the headache you are going to have to deal with. 

Upon letting pest control into their apartment that Monday, I discovered that their unit was not kept in sanitary conditions.

The only knowledge of the property/condition is from public record and just driving by.