It is not on the market but I have an investor who is interested in purchasing it. 

On wholesaling that is just transactional real estate with income that is taxed at the highest level and to be successful at it one needs partners or access to pretty decent amount of start up money to afford the marketing it takes to get your leads.

With the economy and market as they are, should I continue aggressively paying down the HELOC to potentially borrow against again or should I just pay the Interest Only (IO) payments and seek other funding at the current day higher interest rates?

You probably have heard to join the local REIG as what you will find from the courses advertised everywhere anymore is that they offer general information that in many cases does not fit your market or state requirements. 

New constructions in the neighborhood are selling for a significant amount above construction costs (double or more the market value of the land).  

The facebook groups are a great place to find mentor programs and such in your local markets 

Dba is typically for marketing purposes or if you are in another state and that name is already issued

This would significantly help my ability to afford the market from a house hack standpoint, but I want to understand what those tax advantages are renting out my basement as a business rental.

This new property is roughly 1,600 sqft, with 3 beds and 2 baths.We see this as a unique opportunity, especially considering how rare it is to find this price for new construction in the California market.

I'm still not following what you're saying about where the list service obtains the "current market value" of the home.