In addition, the brokerage LCL seems to manage quite many properties in SoCal.

Here are the costs to address the issues uncovered by these experts: 1.Wood floor and wall in the middle unit: $44,000 + tax + $2,800 for permit, but engineer report is needed for a formal quote.2.Roof above the middle unit: $8,000 + tax + $800 for permit + ply wood;3.Sewer line outside the building (see estimate): $7,365 total;4.Sewer line inside the building (see estimate): $21,663 total;The total cost plus 10% contingency is equal to $100,000 in repairs that I cannot afford to pay and still be able to fulfill my obligations to you and to the tenants that will have to be displaced for the duration of repairs.In addition, the appraisal came in at $275,000 that is considerably below the $340,000 number.Proposed solution: You will complete all the electrical repairs and ensure all three units are brought up to current code including the outlets.You will have the stucco repaired on the exterior that was damaged by the electrical proof.

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!...

This cash flow does not include equity gain from making the payment which is in effect additional cash flow that can be obtained with a little effort.

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.

203k loans and homestyle renovation loans are products many banks offer for rehab deals.

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.  

If your intent is primarily to hold for productive use then you can use the 1031.