i am not sure how to move forward.I would appreciate any thoughtful advise on how to best proceed in this situation.

If you are selling the house that has the HELOC and your sale proceeds cover all liens, the liens will be paid through the closing at closing to give clear title to the next owner and any "excess $" you get to pocket.

I just don't know how to proceed otherwise, specifically because of the concerns that you mentioned.

I would find a real estate agent in that town and I would sell it, and then re-invest the proceeds in something easier to manage.I've been investing and self-managing properties for nearly a decade now, and yet I would not feel at all prepared to manage a rental in Australia.  

(This happened at my residence when I was buying it; I had to pay a plumber to fix it before I could proceed with the inspection.) 

Like in the example of buying a quad, living in one, rehabbing the rest, increasing rents for the rehabbed unit, using the GMR for the area to find a new valuation price for the quad, refinancing, buying another unit, waiting for another year, monitoring the GMR and selling the first unit at a high appreciation, using the proceeds towards a 1031 exchange and repeating the process.

(I actually did one myself on a rental property that was paid off and used the proceeds to buy another rental property.)The challenge in your case is going to be finding a lender that will do one on a home value that low.

She sent this after I was upfront about my minimum qualification standards and she said that all sounded good and then proceeded to ask about the voucher.

Proceed at your own peril but you'd have more fun and a better return standing in front of an enormous fan and throwing handfuls of bills into the air in front it.  

Just posting to say things will be changing, there are enough guru bashing threads and posts here. :)