For example, what is the cost of living now and projected in the future? 

Houston, on the other hand, has higher appreciation potential, a growing job market, but also higher entry costs and more competition.

You'll need money for: closing costs, down payment (if any), operating capital to get the construction/rehab started (most HMLs reimburse you in draws for the work completed), along with some liquid reserves on top of that.

Meaning, if you take the money only, you would have depreciation recapture from your cost basis up to the original purchase price of the building (not including the land cost because it wasn't depreciable), plus a capital gain up to the insurance proceeds.Hope this makes sense. 

Quote from @Stepan Hedz: Selling fees (estimate), $30,000, and holding costs?

House hacking by purchasing a duplex, triplex, or single-family home with extra rooms can help you reduce or eliminate housing costs while building equity.

You'll want to incorporate interest costs on the HELOC while you're using it, but that will add to your holding costs in addition to utilities, closing costs, etc..

Holding costs should be lower than using all of HELOC. 50k won’t cut most purchase prices, so have to use some of HELOC too. 

Will it cost more?

Go ahead and file.In real life it costs you time to figure it out and money.