I looked to see what the appreciation was over the almost 50 years and it comes out to about 9.5% compounded! 

What are you carrying for simple things that are required, like insulation, sheetrock, tape and compound?

It took choices and is a symptom of years of compounding choices made.  

Currently we have been approved for 50K loan, looking in Grove City, but anything in that range is either not in area we want or needs too much work and the conventional loan won't allow for it (bow in basement wall etc.).

I continuously run a CAGR (compound annual growth rate calc) including appreciation (my estimates, some validated by refi cash out appraisals). 8.

It will give you an early lesson in real estate and the power of compound interest.

Tim, I bow to you master.

Twice :) Then I discovered "exponential growth" and "compound interest" and decided I'd rather not live off my cash flow! 

This is compounded when junior lien holders and other estate creditors have claims that must be negotiated in order to complete the transfer of title from estate to you or your entity. 

In addition, once you have both properties cash flowing- you could focus on paying down the heloc quickly to free up more CF(start benefiting from compounded gains over time), or pay it off when you liquidate the primary.