If you feel ambitious, you could try a BRRR strategy adding additional equity to the subject home and then taking equity out of it to pay off either the HELOC or if you decided to the refinance the primary residence. 

Affordable housing is RED-hot at this time, especially if it's decent 3br+ housing sub $2k.   

In the mountains it would be perhaps the view, the fireplace, or hot tub. 

I'm a local Baltimore realtor and I know for a fact that this market is red-hot and everything, and I mean anything, can be sold for the right price.

Even if the property is short, a contract with a buyer, even subject to short sale approval, should work. 

The backyard has a full outdoor kitchen, hot tub and a pool but... 

They're looking for a stable market that is gobbling up houses just after a slow period so they can still get good deals on land before it gets hot and popular again.  

When people bring up Subject To (very risky) and private money it's usually because they have seen a lot of scaling content.

Personally, I'm incredibly ignorant on the subject compared to others, but find it fascinating.

Only trick to this would be if you do not own your current primary residence and you do not have a current housing payment, then no rental income from either the upcoming subject property or investment property can be utilized towards qualifying.