You created a financial model of what you want to happen to your money and investment, but the actual process makes no sense to me at all.

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I deposit my paychecks there and for all the time the money would usually sit idle until the bills are paid, the heloc interest calculates daily, so it would be lowered by my deposited income.

There are some exceptions, but they are rare, they have access to funds, and they typically built their empire when the timing was right and got lucky.Likewise, it's not often that you can buy a house and sell it for big money six months later.

if your ARV is 200K, for example, and it needs a medium or greater rehab, you probably need to buy under 100K.  150K won't cut it, you'll lose money.

My seller has now put money down to buy a triplex that FIG is building in American Fork, the cap rate is 7%.  

It is easier to budget things if the money is separated.

Keep in mind, with hard money the down payment tends to be a bit more than traditional loans. 

I’m just not sure if my first REI should tie up my money in a long term asset (appreciation) vs investing in a quicker ROI (fix&flip, BRRRR, wholesale, or simply cashflow)The typical down payment in Denver metro for single family is around 80k (which I don’t have in liquidity).  

This is a complete scam, all he wants is your money and nothing beyond that.