What "is" financially responsible is easily accessible to find, as is the simple math performed above.

I could still access equity through the HELOC for future expansion and the rent would cover HELOC interest payments while I stabilize future assets. 

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Price, Condition, Access. 

Bridge cash out is a great option, especially if you cannot access the property bought at auction prior to closing. 

I'm a Real Estate Licensee who works in a very remote, fly-in access-only community.

I can see a scenario where I take on the risk of a high interest rate and less flexible terms for 5 years, so I can access my cash sooner if that option is there.

Yours has far easier access. 

- all you would do is "manage the manager", which you could do from anywhere you have internet access.

What is the fastes legal action to take in NJ to get access to the rental house?