Being a shorter repayment schedule as well as higher interest, it looks like the HELOC would take a good bite out of one's cash flow, and that it is only a temporary solution, not a permanent one.

Jobs and kids put our plans on a temporary hold for the past several years.

Sellers tend to take many months to see if interest rate spike was temporary and settles back down or now the increase is a (new normal) and seller has to adjust price to sell.

If you believe this down turn is pretty temporary I believe its in your best interest to hold onto your home and possibly rent it out until you can get a better price.

I have also read about buying lower priced $50k properties all cash but that seems to lose the value of leverage and thus give smaller cash flows.I've been reading a lot about HELOCs and from advice I'm reading, I gather to really only use a HELOC as a quick temporary purchase vehicle since technically the lender could call the balance due at anytime. 

We get him set up with a temporary Nevada specific program that was incredible, giving him 10% in free money due to the zip code the home was in.

Peeling paint, cracked window, wobbly handrail, crumbly cement steps, temporary (adjustable) lally columns, knob & tube wiring, etc.3.

I suppose the only real worry would be for a temporary time you're holding a rental property in your personal name until work is done and / or any potential inherited tenants have vacated.

What loan options are there for buying a house on a large lot and then splitting up the lot into smaller lots?So far I found a local bank that will do it as an in-house traditional mortgage.  

It’s painful and discouraging now but those feelings will only be temporary.