If you just wanted to know how to sue a former tenant, without talking about the mistakes that got you into that situation, then skip the back story.And when someone spends ten minutes reading your post and then takin time to provide some "thoughts/advice" on it, maybe show a little grace if you disagree with their advice.

Are there any lenders offering HELOCs for small business owners who primarily use bank statements to qualify, especially those with write-offs?

You'll get a few advantages from higher loan amount (qualifying rental income)  to substantially more income (multiple units).   

Lenders often consider a percentage of that rental income when assessing your borrowing capacity, which could make it easier to qualify for a new loan.Market Conditions: Analyze the real estate market in both your current area and the area where you plan to buy.

From how you describe your situation, I don't think you'd qualify for the construction loan, they are very conservative on their underwriting.  

It's a high risk area, I would expect a lot of turn over/vacancies before you come across a qualified tenant.

From what I can tell, it lets investors buy a property that probably wouldn't qualify for a conventional loan (these properties were...not livable). 

Talk to a lender immediately and see what you can qualify for.

First, qualifying as a real estate professional for tax purposes requires more than just 100 hours of participation.

But you left out a keyword “qualified”.