I make sure that the Security Deposit and Last Month Rent requests are clearly distinguished.

I even tried to cut my losses and told him to keep 7k for a half days work of demo and return the other 8k.

In Denver for example the Montbello sub-market which is typified by low clear, poorly loaded undesirable properties experienced a resurgence after amendment 64 was past.

I understand that these people don't want to waste their time over "hypothetical" questions like "if I were to buy at X and do Y, how much can you finance for Z..." but I do feel it's important for me to understand the full process and get a clear picture of what to expect a few months from now when I try to refinance one of these properties.Any suggestions/advice would be greatly appreciated.

You can cut your postage cost down to less than $0.28/piece if you mail at least 200 equal pieces.

They were able to get the title cleared and said I'm ready for closing.

Hire a lawyer to assist in the purchase and to review the HOA financials and regulations pertaining to investors.Buy with minimum down/maximum leverage if you hope to gain true positive cash flow.Dead equity and HOA fees will seriously cut into your cash flow and turn the investment into a liability.

What I am not sure I am clear on is, if I believe that my W-2 income can support the payback of a HELOC or home equity loan, and I use the funds from that loan to buy a cash-flowing property below market value, what are the risks of going this route?

Find a multi-unit owner who has paid  off the property free and clear and is willing to be the bank for you. 

The developers will be clearly taking home a lot more of the cash.