What I can't understand, is that if you pull 80% of the equity out to buy another property, all you did was make your payment much larger and you no longer cash flow, or just barely make the expenses....  

So expenses of 17K. 

Confirm income and expenses.

@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.