The HELOC terms differ from bank to bank, obviously, but I was under the impression that I would be able to secure 100% of my equity and I was wrong.Not sure what your current situation is, but have you considered house hacking as another method to finance your new purchase or pay down your current house?

If he does so, offer to give him a good reference.I cant imagine talking to a lawyer over 50 bucks.. just take the check.. write them a nice letter and tell them that the late fee should be on the next rent payment.I have seen so many landlords step over dollars to collect pennies.. you going to evict someone over 50 bucks and now have vacancy with the risk ( depending on your area) that comes with that and the lose of rent.. this to me is just not wise move.. 

Inspection of the building is the next step.

After listening to podcasts, reading a few books, and reading this blog,  I feel that I am ready to take that next big step. 

I've been listening to the bigger pockets podcast for a couple weeks now and am looking to make the first steps in investing.

He has answered all of our questions about the process and the steps that need to happen, however, we would like to speak with investors who have been through the 203k loan process and have used these loans to fund deals.

First step is a very rough estimate to see if the property is worth evaluating further, next is a detailed estimate on your own when you go out to view the property if you do so that will decide if you want to make an offer. 

your method is the preferred way.... 

My main dilemma is determining which method to start with.

You need a good Qualified Intermediary on your team for any kind of 1031, so that should be your next step regardless of whether you intend to purchase a new build or an existing property.