This would give you more leverage when/if you do decide to sell.

In order to minimize these taxes, it is important to make sure that all of your assets are properly documented and organized so that you can determine what would be best for your heirs.

Here is the question of the day, do I spend my $70k from my solo 401K and purchase a house at auction or do I leverage that money and purchase say a 4 unit with a mortgage? 

But if you want that money that you spent to fix it back, or if you can take that money and "leverage" it into another investment, then it would certainly be worth examining.

With that being said my uncle who also invest in commercial real estate ( he does a lot of hotels) was impressed with the deal I found, the analysis and how organized I was.

Just don't be over-leveraged.  

That puts you in an overly leveraged position which is dangerous for you and the lender.

My HELOC now "plan" was to create capital flexibility so that I can leverage the HELOC for this project or some future purchase which is TBD.Peter

Increase rents with renovated units plus organic rent increase and controlling expenses.Exit Strategy: 10-25-100 rule, increase the NOI by 10%, which increase the equity by 25% which gives 100% return on your original investment, refinance or sell in 24 to 36 months.

You as the operating partner are responsible for the management of the property: finding tenants, maintenance, overseeing and organizing the financials, etc.