and rural parts of N cal.. like Yreka and the smaller towns in the Seirras I would not consider them hot.. but bouncing back to where you can actually sell something.Along with most of the mid west smaller market cities unless there is intense turn key activity.

I get that interest rates are typically higher on a HEL than on a cash-out refi and that could be one drawback, but if you workout the numbers and you don't intend to hold long term I could see the benefit of having more cash available to invest immediately in other deals outweighing the cost of the additional interest.

I remember saying to myself after, you don't know how to pick up a hammer to pass this test.I passed the test, but what I was going to do that required the license didn't work out, so I didn't renew it. 

That is generally sound advice that I agree with....on one condition....the numbers work out.

They have to work out the FDIC/SIPC part and then I think they will open up - heard they are rebranding...

However I am wondering if I could reach out to the mortgagees local debt collecting attorney and work out a purchase agreement with them instead of waiting until the auction takes place.

If rent numbers work out I would not consider option 3.  

A few simultaneous no-pays in your portfolio can kick off a bankruptcy if you don't have ready cash for payments.My take-aways so far have been:RE investment is extremely cash intensive, you *must* have cash or access to cash.

@Ben Grubner for a lot of the south and southwest suburbs there is a pretty intense process to close.

Rent by room is labor intensive and hard to scale.