Would there be issues with the 30-year conventional bank loan itself for the 12-unit apartment since the down payment is from a HELOC?

Set up the LLC business bank accounts.Moving to an LLC increases costs, work, and complexity.

Attending auctions, negotiating directly with banks, and exploring short sales are all viable strategies depending on your investment goals and risk tolerance.

My personal opinions below, with a lot of generalities. 

Question - I believe my personal umbrella policy should cover me personally assuming they cannot get me dismissed as an individual.

A licensee has infinite more liability than a lay person.

No current liens but these properties have tax deeds, not warranty deeds if that matters.That as-is value is going to make obtaining financing more difficult for sure.Financing options drop off pretty steeply below a certain dollar amount because foreclosure costs for lenders can be significant.Your best bet may be to connect with some local private lenders (local investor meetups/referrals are a good starting point for this) or local banks.

Citizens;Native Americans born in the United States;Aliens or persons who are NOT citizens of the U.S. who are or may becomebona fide residents of OklahomaBusiness Entities or Trusts who are similarly attesting that they are either U.S.citizens or NOT U.S. citizens but may become bona fide residents ofOklahoma.

Also don't forget to get an extra bank account for security deposits and set aside money for repairs.

Problem is, the first bank I've talked to said that I am going to get killed in fees, closing costs and interest, as it would be treated as 3 separate very small mortgages.