Both of them are offered as value-add plays based on a light reno which is supposed to result in rent increases of $115 to $150 per unit.I have my own thoughts on where I want to be in terms of property quality but I wanted to see if any investors local to the area or knowledgeable about the area could offer any opinion on what class these two neighborhoods/areas are and which of them would be more resilient in an economic downturn.

Putrid pink aside, would a better color help you attract a higher quality tenant as just opposed to a rent increase?  

$495/mo rent indicates low quality area and low quality tenants who are willing to live there. 

On my out of state properties I pay a flat 10% and we've been able to build a strong and productive relationship.

Sounds like you should go hard money for the acquisition and renovation and then go with a no income/no seasoning or short seasoning product if you want to make it a long term rental. 

Hi All - I have substantial equity tied up in two investment properties (a 5 family commercial property and a 3 family residential property) which I would like to access through Line of Credit products.

So consider expected tenant quality in the area. 2.

Are the classes of substantial quality to demand that premium? 

I am just starting out and wanted to get quality advice.

Likely, will go with the lenders that already have a short sale or foreclosure lending product, for obvious reasons.