HELOCs generally are not so well suited for long-term debt as a mortgage.

I currently own my primary residence and recently decided to buy a piece of raw land where my father’s construction company is, and with his help,  build a single family home on it which will become a long term rental when completed. 

Is it okay to make that investment and wait for a long term appreciation?

Basically - any legal filings that come into play during that redemption period could cost you the house - but you wouldn't lose your money as long as you didn't default on your obligations to the court / auction.In Florida there is no inspections of foreclosed properties.  

Do I hang tight and pay out of savings, hoping it's worth it in the long run? 

Does anyone have a long term relationship with them who'd care to comment?

Last thing you need is a spec house sitting on the market too long.

But now reading this thread, I'm considering instead to ask her to do a sale price of her basis + 250k so she can avoid capital gains (she has lived in the home a long time).

Those costs factor into the investment and I think technology is going to go a long way in reducing the costs for vendors, lowering the costs for buyers and helping Roofstock bring about a better experience for the investor.  

If you rent out a property to someone, the property is the product and the rental - long term or short term - is the service.