A Lot of turnkeys are going to these undesirable spots and its highly possible you'll end up with more liability with turnover rehab requirements.

Explore the possibility of doing liability insurance instead, if you don't have much equity it may be your best, and much cheaper option.  

I just paid my contractors liability insurance and it went up another 40%.

That’s something I’m still fine-tuning as I explore new areas.As for scaling up, my focus right now is on leveraging tax-efficient strategies and building a system of limited liability companies (LLCs) to keep risk compartmentalized.

Generally yes a HELOC will go off your personal finances so qualifying is generally based on your income, liabilities, and credit. 

The only reason why I would do that is so I can 1031 and minimize my tax liability.

The only place it might become custom is where your notes are assets/liabilities. 

Avantstay provides $1M liability insurance and they cover all guest-related damages (for master lease).

Often times they come back with a list of repairs that they would like to see to protect the home or mitigate liability. 90% of the time those items were on our list to fix anyway, and sometimes we even haven't done before we get the letter from the insurance company.

Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.