As for the future I hope to get a Heloc or other type of loan against it in the next few years to pay off the current owner and do more repairs.

You could do that for a period of time and get your mortgage paid off twice as fast, if that's what you wanted to do, then use a HELOC (or some other form of loan of your choosing) to renovate it into a SFH...Obviously I don't know what your family's needs are but I'd be interested in hearing if you'd considered this, if you don't mind? 

I'd rather get a HELOC or refinance... unless I'm missing something.  

If that is the case, you sell the house, pay off the HELOC, and use the $15-$20,000 to get into a new house.  

You could approach a creative lender or private lender for a type of HELOC.

She can do a quitclaim deed to you and then you can take a HELOC on it, but what are your plans for the property? 

Also fair amount of debt (2 car notes, Heloc used to remodel primary house). 

That may help get you the cash you need instead of a Heloc. 

The other thing we could do is an All in One from Merchants Bank of Indiana (I live near a branch), which is a first position HELOC that is connected to a checking account. 30 year term with adjustable rate.

Perhaps you can get a friend to lend you money as debt loan until your refinance or pull out a heloc.