An item just got upgraded from +1 to +2...tried updating it-still at +1...made an entirely new item that is the same with +2 and it not even popping up in "manage equipment" 

What do I do?

It can take up to 20 minutes for homebrew to be updated. Typically doesn't take that long, but it does take a few minutes.

I knew that and it still hasn't changed - other item hasn't even shown up as selectable still...dunno what is up =(

After you changed the modifier to adjust the magic bonus, did you remember to re-save the entire magic item using the main [SAVE CHANGES] button under Basic Information? Only that button triggers the system to pick up any changes. Even if you think you did it, it cannot possibly hurt anything whatsoever if you save again just to be on the safe side.
That should always be the first thing you try if face with a situation like this.

Sometimes the independent cache for the character sheet doesn’t update as smoothly as the general cache for your stuff. If you adjust the character’s level and then adjust it back again it wakes up the sleepy sheet cache for you.
This is the next thing to try.

If steps 1&2 don’t do the trick, the third thing to try is a post like you made here. Only if you don’t copy/paste the URLs for that character sheet, and the homebrew that is not updating. Without those two links the Mods and Staff cannot investigate it for you because that have absolutely no idea what your talking about. (They can even look into unpublished homebrews for you because they have Admin privileges since they’re bonafide.)