We have family ties to the area but live out of state.

Also your money is tied to one project - that project goes bad it could cause some pain3.

I don't have the financial means to pay for a lawyer so if feels as if my hands are tied. 

I haven't done any skip tracing really.. but I you look at all of those sites like been verified, spokeo, etc... you can tell there is a ton of information out there tied to every person, people with the same names in same cities... multiple people tied to different addresses..etc...    

If the lender contests the funds release and don't choose to release the escrow funds back to you, it can get tied up in litigation and after 3 years will be surrendered to the state by the title company.Your best bet is to go with a legitimate company that will be up front and transparent with you about the terms and costs before you are already committed.Seems like everyone is telling you the exact same thing so I really do hope you make the right decision here.

I could also pay down the HELOC over time for lower monthly payments as time goes on (and subsequentially increasing the cash flow but also the equity I have stuck in the property).The downside is uncertainty about how long I'll need to wait for a better market, and the HELOC being tied up until I can sell or refinance.

Any of the utilities that are tied to the property (usually water) such that if the tenant leaves and they are not paid, you have to pay them, you need to make sure they are paid. 

Furthermore, entry level homes typically utilize less experienced real estate professionals and the new rules place emphasis on stronger creativity and negotiating skills. 

They've since changed the proof from 86 to 90, so it is a little stronger than I like, but still really tasty. 

Long story short, I ended up buying that condo, only to find out, after one month, that my living room windows were leaking big time during the stronger rains.