Now if you put in stong offers and lose out, well that's just the nature of the market right now.  

Please fact check me because this is only my understanding of this process, and someone correct me if I'm wrong:When you depreciate an asset, you are writing off a percentage of the purchase price of the property each year to account for the natural break-down of materials (land cannot be depreciated).This process effects how much income you have on paper come by tax season, allow you to claim less income and therefore pay less taxes.When you sell a property that you have been depreciating, you incur what is called Recapturing.

One thing to keep in mind is the "fractured" nature of Western PA in general.

Mine has not flooded but I have 2 sump pits with 3 pumps, 2 of which are backed up by a natural gas powered generator with an automatic transfer switch and one pump which is a battery only. 

I naturally want to limit my liability.

I’m leaning towards HELOC as I anticipate drawing 50k chunks of money at a time but am concerned about rising interest rates and the variable nature of HELOC rates. 

They won't -- it's just human nature- What if section 8 rent is below market rent?

Do you pay the utility to provide the heat (gas/oil)?

(All security deposits by their very nature are refundable.) 

If no one is living there then use oil based, if someone lives there then water based.