After a year we refinanced it to improve the cashflow and I had to replace 2 hvac units and remodel the entire back apartment.

Assuming of course that the finishing work was permitted and performed to code, and the new room's use conforms to habitability laws (for example, the bedrooms meet minimum dimension, ventilation, heating, and ingress/egress requirements).

I am willing to take more risk on commercial if I have solid strategies for improving NOI.

A part of my plan is to perform a cash out refinance to improve my ROI, purchase a new home to perform a live in flip and rent out my current house. 

Live in flip can work here but I have seen many DIY "improvements" in Moreno Valley that harm the long term prospects for the home.

Are there any other factors that could improve her application?

My strategy is to use the HELOC purchase single/multi-family properties under market value that need repairs and renovation, make the necessary improvements, then refinance into a Mortgage (with forced equity), and rent for cash flow.I'm originally from the great state of Colorado, but have been living in Nashville, TN for several years now. 

I am a very driven individual with a big focus on self improvement.

Tons of rehabs going on which is improving these hoods immensely.

We put a ton of work into maximizing the upside and improving the distressed properties and have managed to get annual NOI up to $90K.