If you do not anticipate paying the HELOC back within a certain amount of time (ie 1 year) then doing the refi with a revolving heloc may be the better option.  

My main questions revolve around establishing the HOA for the property.

Basically 1) the city's economy revolves around Ft Bragg and the military, attache, and civilians working there. 2) There are good opportunities for rental income, provided you recruit a good RE agent who knows the city's neighborhoods well enough to steer you in the right direction 3) Don't count on RE appreciation, if anything older properties tend to depreciate.

I want to rehab a distressed property or take over a distressed owners home so my studying has been revolving around everything I need for this route. my plan is to use  hard money lenders until I build up my business and in the future seek other options.I live in Marlboro New Jersey which is a middle to upper class area and hope to purchase something here or my neighboring towns.... since its a desirable location. me and my wife are both small business owners and while we love our careers, we have both expressed to each other the longevity and quality of the life we want. she has been supportive of the new adventure, and I think after a few good deals (and hopefully minimum bad ones!) 

Real Estate is odd in the sense that partnership tend to be easier since it revolves around a physical asset.

They had zero desk fees - what @Jay Hinrichs is referring to - which means no revolving monthly costs.

Run the sewer cam for sure.

It is like a revolving door of owners and there is a reason.  

Two thoughts:  the tenants (not you) should be in the unit, but they must stay out of the contractor's way.  2: if the tenants are concerned about what someone might do in the apartment, they can put in motion-activated video cams (like a nanny-cam). 

@Patrick J. in my experience, most negotiations revolve around three areas 1) roof 2) HVAC 3) health and safety.