The point as I see it is that an additional ELOC or refi of the FIRST one will put a strain on ITS cash flow, but so long as it isn't a negative flow, the amount cashed out should easily be able to act as the full deposit for the second, so the rest could be fairly conventional.And of course, the second one needs to have a SIMILAR order of built-in equity, and so on!...

My basic was using the 75% factor for a long while but now due to my longevity of performance and relationship with them, they now loan me 80% Of the appraised value, interest only for 1 year. 

Of course past performance is not necessarily an indicator of future performance.

Brian in addition to what @Rick S. mentioned, I would also have the seller have the tenants sign a statement - which you will provide - that they understand they must move out within 30 days after closing (which will actually be longer for them considering it seems like your just in the beginning stages of purchasing) and then assign a dollar amount for each day the tenants much pay for each day they go over 30 days - think incrementally, to give them an incentive to move out.

I’m estimating the re model will cost 10k (so plan for 13), and the additional property about 17K with around 10k re modeling.I’m unsure if I should seek two loans one for each house or bundle them together.

It can add an additional layer of protection.

Unfortunately, it does seem like it's more or less an additional income stream for the two that run it.  

I am looking to invest in real estate notes (preferably performing notes under 30k) Any recommendations  on reliable note investing companies with a high success rate? 

Pictures:  Sorry the pictures aren't great quality- They were snapped quickly from my phone before we did the final cleaning for showing the property.Kitchen: BeforeKitchen: After (pictures are from before the hardware was installed)Living Room Dining Room: BeforeLiving Room/Dining Room: AfterBathroom: BeforeBathroom: AfterHall: BeforeHall After:Let me know if anyone wants to see additional pictures or pictures throughout the rehab. 

@Daniel CruzIt's a very good thing that your industry expects much higher standards and performance, after all, you can get people killed.