You jumped in and advised that she should also be looking at using the HELOC for future investments instead of just to pay down the balance. 

I'd advise you reach out to the agency directly and explain to them that you have section 8 on the neighbor property, but this one will never pass inspection that's why you mentioned no vouchers.

Good advise from @Bruce Woodruff

Class D is not usually advisable. 

Knowing what I know NOW, I would advise anyone that wants to be a real estate investor to purchase multi-family as much as they can.

The really experienced advisers will tell you that the most interesting opportunities come up in a recession.

We always do a 15-business-day inspection period and advise the seller that we will need access to the property, which usually takes 2 to 3 days to get our financial partners and contractors to the site.

I'm not an attorney, so cannot advise you.  

In fact, even if the property were to appreciate to the point where a favorable refinance event existed for @Eli Jerman I would most likely still advise against re-titling the property in an LLC.

Everyone is gambling, and I keep advising my clients to please not compete with that level of moronic.