I am using a hard money lender and just purchased a property from auction in Hull, MA.

And if so, any recommendations for a lender in the Indianapolis area?

Once you think you are in the ball park, get connected to a lender that can tell you exactly what you will qualify for!

I'm looking for a new lender for this HELOC product and I see this as the only solution if I'm going to keep my low-rate, first position mortgage intact.

However, always double-check with your lender to be sure.

They will probably only lend 65-70% of the purchase price but this will depend on the lender. 

Or should I rather seek a hard money lender?

You can still get private money loans, cash out refinance or home equity lines of credit to fund your purchases, but just have all that worked out before you make the decision to purchase.You might be asking what are the negatives.

Using private money to pay off the deed then looking into equity loans to rehab and purchase other properties.

I currently have few acres with a house on it and have a private buyer lined up.