And right now some deals (less conservatively structured with high debt, floating rate loans, etc) are under distress and had to stop distributions.

We don't have time for any issue or problem.

The title search is the work researching any issues that may affect the title.

In the meantime, it sounds like not having access to the HELOC is causing knock-on issues.  

In the 1980s there were lots of lawsuits in the area against builders - soil was peat and lots of foundations issues. 

As an investor and wholesaler I am running into bit of an issue .

When I say I've "successfully added" the clause, I mean I've had a tenant-friendly judge issue a judgement against the tenant, noting in the judgement that the tenant owes the interest too.

You should inform the title company that you'll be assigning the deal to an end buyer, so they postpone the municipal/lien search but proceed with the title search to ensure there are no issues with the title.

I suppose the issue is when you liquidate, depending on what order you sell may imbalance your numbers. 

I'm not saying that your plan can't work, I'm just pointing out that these types of extremely cheap properties usually come with TONS of unique management and sales challenges that don't occur with more run-of-the-mill properties, so you'll want to study up on those issues and have a game plan before proceeding...regardless of what you decide to do, it may be a good idea to consider how you could leverage this deal as a springboard to get you to other, higher-grade properties......the good news is that you're only $5k into this thing, so you're not in too deep...yet...Good luck out there!