However this may have variable interest rates, shorter terms, and interest only. 

@Kahntineta Ford  If by oversaturated you mean excess supply, then no, I do not believe so. 

I have a contact who could do property management in the area who tells me that massive amounts of tract homes are getting entitled there, so I am a little concerned about an impending flood of supply.

Post licensing/continuing education costs, marketing/supplies costs, suprakey subscription (or whatever equivalent your association uses), etc. etc.

I am supplying ALL the materials but he has given me a proposal to do the work @ $2700.00The materials are estimated at around $1500 give or take.Take a look at the catwalk (it's fairly large_105 ft by 5ft wide)Let me know your initial thoughts on the job/price.

This is a whole lot of money to spend just to pull out about $50k.I have some private money loans I would like to extinguish and I have other opportunities that I would like to pursue, which is the motivation for releveraging.In the alternative, if I wait a few months I can get an 8% 10yr HEL (fixed) or a 6% 25yr HELOC (variable) from another local bank with no closing costs.Am I pursuing a bad deal?

There are so many variables and market changes etc. in real estate that if you are pursuing some panacea in real estate proficiency, I doubt you will ever start investing. 

If it were me, I would do the following:- Remove the fake soffit above the cabinets - Free- Get new 36" Cabinets from Partners Home Supply (includes island and crown moulding) $2,000- New Countertops Granite Includes Undermount Sink - $1,200- New Appliances - $1,750- Tile Backsplash - $250- Tile Floors (In Kitchen) - $300- New lighting - $150- New faucet for sink - $75Total For Kitchen = $5,750As for the bathroom - New tub or shower pan - $350- Tile the walls - $270- Vanity Cab from Partners Home Supply to match kitchen - $110- Granite Top for Vanity - $150- New faucets and shower head w/ diverter and tub spout - $150- New tile floors - $100- New toilet - $150Total Bath = $1,130Total Renovation = 6,880** If you're not capable of doing this work on your own, most of it is quite easy.

Your former profession should be a supply of all the private money you will need.Check out the Start Here page http://www.biggerpockets.com/starthereCheck out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice.

You'll want to analyze unemployment trends, the industries in that market and how diverse the job pool is.After that, then take a look at cost of living, supply/demand, landlord friendly or not, and ability to get good team members.