The interest rate on a HELOC is usually higher than a normal 1st lien mortgage, but I am seeing some cases where HELOCs are in the 6's and 7's (where credit score is high and LTV is 65% or lower), which make them pretty comparable. 

DSCR guidelines vary by lender and working with a mortgage broker or lender that specializes in these mortgages can help get better terms such as a DSCR 1 ratio vs a DSCR 1.2 ratio.

It is the only house making more than double my mortgage payment.

No problem, we'll look for smaller, cheaper houses. 

BUT, refinance/heloc/2nd mortgage appraisals do not have a contract price to help target the value you are seeking. 

When someone can’t pay their home mortgage payments it is not likely fraud, just a job loss or business loses.  

In an effort to bring ANY $ in to help cover the mortgage ($4600 including taxes and insurance), I put together an AirBnB site for the property and set it live, with zero expectation.

Its still your debt, though, and it would now be the first mortgage and your new loan would be a second. 

Finding another contractor, cutting costs somewhere in the job, and finding cheaper money (doing it all cash). 

The property currently has a mortgage on  it, but it should be paid off during the sale as my parents want to own the property free and clear.