The only thing I would have to fix would be the garage at some point.

Sounds like a hard money loan....buy the house, make the fixes and then refinance if you are going to keep for a rental or home purchase.Lots of normal lenders will not lend on homes that are not in good condition. 

So we decided to take out HELOC with 3.99 fixed rate ,3 years draw period and 10 years Amortization , $0  closings costs.

He only gave you an estimate, not a fixed price bid. 

Or it could be a multi-thousand dollar fix.

The interest rate can adjust on a HELOC so it is better used for shorter term debt like a flip or a BRRR.Home Equity Loans are installment debts that you pay a fixed amount on what you are loaned, and you must begin repaying it immediately.

I invest in MFH and Fix and Flips.

—I’ve heard that as well is the places you rent out don’t necessarily have to be top of the line for the students but more or so maybe fix em up a little.

Personally I want to money to fix it myself, however if following the lender's policy I'm only able to get 3% credit from sellers and it will go to closing cost...

Doing a few wholesaling deals, will give you the funds to clear up your debts, save some money as reserve, and then leverage to borrow more money in the future if you want to fix and flip or buy and hold.Research "wholesaling real estate" in BP, YouTube, Blogs, etc.I love wholesaling.