@Mathew Gunkel, I know it's emotionally logical to put your primary up for extra risk as a last resort, rather than first cab off the rank, BUT, that's why the PURPOSE for the loan should be really carefully considered in the first place.In case I came across as someone who knows what they are talking about, I don't actually know the HELOC rules/interest that Lenders have regarding using your primary as security vs your investment.

I've had cases where it was under market rent and by investing some extra time off market and rehab dollars the return on that investment was incredible, so keep an open mind to that as well if that's the case. 

I'm treating this all as a business so if it costs some extra fees a year to save my behind from being sued and losing everything why not pay the fee?

Yeah, let tenants build you up 4 more years of equity, while paying you a little extra each month and then sell at year 10 to get that multifamily you want.  

On this new one, assuming you get an all-in cost a 180k (with your 25k in there), and you get 172.5k, then you only have 7.5k cash in but youll have the extra 50k if sold, am I getting this correctly?

Stick to the facts and the truth.

It sounds like you have a great plan, renting to friends and banking the extra $.  

On the other hand, that extra "dry powder" in hand would come in handy so likely higher reward too.

Pay down extra on the principle of my first property.2.

These extra fees reward bad behavior IMO.