Myself, I would stay with the numbers in front of me that have proven to be profitable.

In the end I still made a profit and helped a new investor.

(this will help you keep your money)Profit First, by Michal Michalowitz (this will help you organize your money)The Millionaire Real Estate Investor by Gary Keller.

Access to financing, such as 90% of the purchase price, can significantly lower the entry barrier, but success still depends on having a well-thought-out plan for managing renovation costs, timelines, and potential risks to ensure a profitable outcome.

I'd plan to save any profits each month for future CapEx, repairs, vacancy until we had ~20K for this house set aside.

This is important because right now we could probably make around $200 profit after all mortgage payments, insurance, etc.

The strategy involves using the HELOC for a flip to generate fast cash, reinvesting profits into long-term rentals, or exploring alternative ventures like short-term rentals or partnerships.

My thinking is this leaves me with two paths: A) Best case is I pick up the foreclosure for $1M, immediately list it for sale at $1.6M or more and hopefully sell for a > $500K pretax profit. 

Reduce the price, make the sale, split the profits, and re-start your life.

The property cash flowed roughly $250 a month for 3 years and sold for a profit of roughly $80K.