OpportunitiesAffordability: Compared to many West Coast markets, Albuquerque properties often come at a more affordable price point, making it possible for investors to get started without a massive initial capital.Rental Demand: Due to the presence of UNM and other educational institutions, there's a consistent demand for rental properties, especially those close to campuses.Cultural Appeal: With its rich Native American and Hispanic heritage, Albuquerque offers cultural festivals, markets, and historical sites.

Namely, that if a tenant (in this case accompanied by a whole family) ends up stop paying rent and I would be on the hook for both covering the mortgage and dealing with open ended legal costs and time.

It mostly means you don't want to deal with banks initially. 

Initially, our plan was to fix the drywall leaks, clean out the property, and relist it for a small profit.

This is a the perfect vehicle to use for short term like buying a  property with cash, then refinancing the property to pay the line of credit back in full, and use it again.   

I have found that they worked really well when it comes to getting better tenants and better rents, and having less hassle, less headaches, and then getting a higher sales price; without paying closing costs or realtor fees.

The most important rule is to have the cash flow of the new property be able to pay all its expenses, mortgage, AND the line of credit back.

Despite paying fees, doing a deal and making some profit is better than sitting on the sidelines. 

Same day auctions of course are not going to be possible for a lender to lend on the initial purchase but you can often get the same hard money purchase terms right after closing if you're able to buy in cash

If you have cash, you could pay off the underlying loan2.