I am assuming a bank would only loan 80% of the appraised value which may not leave $$ for improvements.- use hard money loan for the rehab work- refinance into a new 30 yr mortgage to pay off the HELOC plus HARD MONEY?

Or over-improving with things you "like" vs. best ROI. 

But I think sometimes it's hard to remember (at least it was for me when we first started looking) that even if you're estimating -$400 for cashflow, you're still making a decision that probably improves your overall financial position by hundreds of dollars per month compared to your current living situation.

But, I was selling at 6% cap rates when the market improved, and 5% cap rates as the cycle matured. 

For example, do you want something that is move in ready and may just need minor improvements; or would prefer to purchase a distressed property that needs some work, but could potentially yield a higher ROI.As Adam mentioned, getting your financing in order is a crucial first step as then you will know what you can afford to buy.

Talking to the tenant has done very little to improve the situation. 

What's the biggest point of improvement?  

So usually only improve what really needs to be improved.

I also haven't seen much improvement on the wholesale deals being presented yet.

Are there any available classes on home improvement in the nyc area?