I would think they are only selling rights to the HELOC; However, the language used suggests they are foreclosing on the property. 

I went ahead and created a pros/cons list:New England Pros: Close to home base (drive within 2 hours max) and comfort with the region (know the cities/towns)Good opportunity for price appreciation (not that I am looking for some huge increases)As a result of price appreciation, I am considering taking out a HELOC to do more deals.New England Cons: High acquisition costs (purchase price/down payments/reserve requirements)Lower cap rates/slim cash flowExpensive repair costsMidwest Pros: Great cash flow/cap ratesPrice stability (prices don’t increase or drop significantly)I can scale the portfolio and really achieve my goals rather quickly (more on that later)Midwest Cons: Investing distance (I’ll need to get on a plane rather than jumping in a car and going to see the houses, whenever)Low familiarity with the region.

I just recently used that first place as a HELOC to fund a purchase and rehab of a much better deal.

Sounds like something I'd hear from a guy on stage in an expensive suit who is trying to get me to sign up for a HELOC at the table in the back of the room so HE can put my "dead equity" to work... paying for his lifestyle.

I am fortunate that my cousin has a very large HELOC, which is the kick start.

Moving forward, I took out a HELOC, purchased another distressed property for cash, fixed it up and rented it out.

This HELOC, hard money or revolving account is borrowed money. 

I would recommend getting a HELOC (home equity line of credit) on your primary residence.  

If I have $200k available from a HELOC with 3 mouse clicks (a computer mouse is not a human), I'm a cash buyer for properties less than $200k. 

My first question is, do you guys have any luck getting a HELOC on a property such as this?