How to fund improvements home equity loan/cash/first mortgage?

[Mindy Heidel]

I bought the liens on two single family residences at tax sale, the redemption time will expire soon, (and knowing what I do about the owners), I should own both free and clear. One is owner occupied the other is renter occupied. I plan on trying to keep the renter. I know both homes are going to need some work. I am hoping $20k each will get the job done. I believe the homes to be worth at least 30k each prior to improvements. Of course this is all a guess as I have not yet seen inside the homes. I want to have some idea of how I am going to finance when I get possession.  

I have excellent credit and a good DTI. I have enough cash to make $20k of improvements, but I would rather keep it and finance the deal(s). Am I better off with a HELOC or Home Equity Line of Credit on my primary residence (I have enough equity to do this) or taking out a loan (or likely loans one on each home) on the investment properties to finance this? How likely am I to be able to get financing on these properties? (My guess is none until I file and receive a quiet title order) I could also cash flow the improvements over 6-8 months per home, but would miss out on rental income and have to pay $2000 to $2500 in taxes and utilities.

I plan on holding these properties long term. One  (2bd /1 bath) is rented at $500 per month the other (3bd/ 1.5 bath) I expect to rent for $600-$700 per month depending on the condition that I find the home and the level of improvements.