What I'd keep in mind now is not to add more unnecessary debt onto your plate than you can handle.

@Crystal Wilson read your HOA rules and regs and see if there are provisions preventing you from sub leasing your place.

That's not the cure-all that will prevent a recession but it's a positive bit of news. 

(hard money/private lenders).A good rule of thumb to prevent this is to ensure the investor keeps about 4-to-1 or 5-to-1 equity in each deal.

Im just wondering if there is a law or something that would prevent me from buying a distress home at near payoff or loan value before the auction.

There will probably be some limit that prevents companies or out of town individuals from owning STRs, and probably limits local investors to 1 or 2 STR properties. 

Roof needs some work around flashing to prevent leaks, a few windows need panes replaced, etc. 

I don't want to decrease my credit score further by closing on the HELOC and hurting my chances of getting good terms on my cashout refis.I need to close my desired loans and do a new investment purchase in the next 3-4 months as my work situation will prevent me from doing any real estate deals for the next two years and I will no longer live in this area where I want to buy.Any advice would be greatly appreciated.

 :)Looking for an in-house lender for commercial refis/BRRRR.  80/20 LTV on multifamily and a general eagerness/willingness to do these kinds of deals (I've found that some have restrictive in-house policies that prevent full cash-out, even if it appraises).  

Your post includes a lot of extra, unnecessary information, but it sounds like your key issue here is the bank will not qualify you for the loan as your debt to income ratio is to high, partially due to the car loan.They way debt-to-income ratio works is the bank takes your total monthly debt payments and divides it by your total monthly income.