So areas like that are not a smart bet compared with more urban areas.

@Amala OdomsI would not refinance to a higher interest rate if it were me. 

hey @Andrew Postell im also curious as i am in the same position and would like to use a heloc from someone else who will give me access to funds but i have no money, poor credit and plan to refinance asap.1.)

With a HELOC you only pay on the money you are actually using not the total credit line.For example if you have a HELOC for $100k and only use $20k of it you then you only pay on the $20k borrowed.Whereas with a mortgage if you refinance for the $100k you are paying on that entire amount from day one.Also as you've already pointed out you can typically get better rates with a HELOC.

If i do not sell, i will look to refinance, take that cash and purchase a multi-family. 

Taking on underfunded investment properties can become very stressful financially and emotionally.Remember - if you decide to wade in now "Cash Flow is king" meaning it needs to cash flow when you buy it don't bet on being able to significantly increase the rent to improve cash flow.Good Luck!   

., but as someone with zero experience, would the single family lot be my best bet?

I bet they will market/sell your phone number.

Then you could refinance and pay back the HELOC and only have one loan at that point.

At this stage of your life/career, your best bet is to maximize your savings into liquid assets (ETFs should be you go to option - Vanguard, Fidelity or Blackrock).