I am located in south central Illinois. 

Or should I just focus on different locations such as Fitchburg, MA (30-40 min from where I live) where the properties are more affordable?

It is located in an area I am very familiar with, in a high income neighbourhood on a quiet street near parks, schools and all other amenities.

You can do a lot to educate yourself, etc that doesn't cost you a dime while you figure out what your next step is.I'm located in Mesa.

But of course that depends on the specific location. 

You have banks ( local,regional,national), credit unions, life insurance companies, & CMBS lenders.Who does what loan depends on location, asset type, and size of the loan.

I'm interested in locating a bank to provide a HELOC on an investment property with ~130-140k of equity. 

In the lease option business, I would be licensed, whether Property is located in WV or FLA.Then I would look for home seller problems, such as expireds, cancelleds, long days on the market, eviction court with DIY Prop Mgrs, etc.Also wholesalers that have leads with little equity.If you are in the "solving problems for sellers" pretty houses with little equity is a good niche. 

I'm interested in potential partnership but I am located in NY do you just deal in Canadian R.E

We currently live in Oregon, we have 2 single family rental properties located in Arkansas, we're looking to purchase our 3rd property in Indiana.