Assuming your state codes allow you can simply give notice to non renew any tennat that does not comply.Raise there rents, replacethem, do as you please.All completely dependant on your state codes that you must learn asap. 

This is a great time to buy and fix up due to the lack of inventory.

Simply view the preparatory time as part of your investment in your future. 95% of the indivulaes in your position fail because they view real estate investing as a way to go from zero to success....this is not realistic, you need cash and a solid income if you hope to increase your odds of success.

Simply replace the cheap carpet that was put in and move on. 

I had thought that I could just take care of everything that looked sketchy in the renovation loan, but something can always crop up, and I wasn't sure if the 20% down on Homestyle was with or without the renovations.I can get roughly $19k as a 401k loan, but I'm very hesitant to do that due to the inflexible repayment terms and lack of early repayment option.

That way if he defaults you just simply evict and take the property back.  

I would simply say no.

If you simply use a random $/SF rehab budget you will miss one of these houses roof costs.The 2 story house I would expect to pay around $4200-4500.

It's simply not possible to have a notary we "know" in every jurisdiction.

Would they simply apply the roughly 1/3 Debt to Income ratio regardless of the heloc facility one has in reserve?