In what instances does a heloc make more sense than a cash-out refi?

I hope that makes sense.

They're not down for owner financing... i've spoken to a couple banks and they don't see the value in the purchase because they said they need a valuation on the property alone and not with the connecting properties (makes no sense to me) so now I've turned to Bigger Pockets and I need some suggestions.Breakdown: 1 Neighbor wants $1.3 million and the other i can get for 900k  both of these + my land brings total SF to around 18k+ sf of land. projects in the area have sold - just land value for approx $300/sf  this lot would be far superior given the location and it becoming a full city block... 

The house makes sense $5k less than the asking price.

If you can make a different counter offer that you think the seller might agree to and it makes sense financially - knowing you have some sizable capex coming up, do it.

But would a Home Equity Loan or Cash out REFI make more sense in my scenario? 

(hint: I think they are wrong)Finding an area that makes sense for an out of state or out of market person to own a rental inDealing with the complexity of financing for both hard money & otherwiseSetting up 3rd party property managementAnalysis of the dealMaking the offer on the MLSThe people considering buying turn-key or Roofstock homes will find this diary extremely valuable.

@Cody Bain, You just gotta run the numbers to see if it makes sense.

If the numbers still make sense.

Thanks that makes a lot of sense.