@Jabari Jones, my question is: would the (future) rent coming in from your current home cover the the HELOC repayments (and other property expenses) once you draw out the full amount?

After all expenses and rent checks, we pay less than our 2 bedroom tenants do for their rent! 

-  Rent would be approximately $1,350 a month (3b/2.5r and two car garage) and owners current annual expenses are approximately $5,500 with taxes, insurance and HOA fees.- HVAC and hot water heater are 15 years old and appliances are that nasty beige and needs new carpet and paint

In both situations you have a $100+ per month expense that can go up or down at the whim of the HOA, so you have little control of your financials. 

.$80 per month for expenses?  

This is what I hear from podcasts, but what do these expenses consist of?

I suggest asking for proof that they've been paying their rent on time and for a full accounting of all expenses at the property.  

@Felix L PerezThere is a lot to explain, so probably you should get with a tax accountant.The short answer is: expenses specifically related to this property (purchase, rehab, holding costs etc.) should be shelved until next year and deducted against the sale price.

They are notorious for sending out teaser bids when the actual reserve is significantly higher.We did all our own title searches - just got to be too expensive with all the houses coming to auction. 

Also for rehabs, what software do you use to track expenses related to type of work completed (electrical, plumbing, etc), and what features have been important to you in your business to analyze historical expenses on rehabs?