Hi Jerrell,  The best option for trying to get a HELOC on a property would be to check with local credit unions. 

We are considering the following options:-I purchase the property from my aunt – Perhaps we can do seller financing to reduce fees?

One option I have is to demo and rebuild the house using insurance money but it will take about a year and lot of involvement.

Quote from @Dennis McNeely: In a sandwich lease option, the investor exercises their option with the property owner to purchase the property when the tenant-buyer indicates they're ready to exercise their option and purchases the property.

They are your best option, because when you have tenant turnover, at least you will still have income from the other units.

In this case, your monthly payment with 20% down will have a good MARKET rate if your DTI works with a much lower month payment and no mortgage insurance(MI).

Fannie & Freddie could be a great option for you but they have some strong requirements, Net worth, experience, liquidity, DSCR just to name a few.Happy to connect & see if that product could be a good fit for you.

If you are having trouble finding a duplex, is house hacking an option?

Are there other options that could be better for a construction to perm loan (not through a traditional bank)???

I did a lot of research on options.