Even an inspection does not guarantee you that the property is "free of issues".

In order for this to not be a loss, you are depending on future events you have no control over.You can't count on the $2400 in rent from the unit you will be living in since you're not getting it now, and you can't guarantee when and even if you will ever move out.That means you will be losing almost $19k/year while you're living in the house (how long? 

If a bank loans you more than their guidelines say, they can't get a guarantee from the government and they can't sell it on the secondary market later.

I view it a bit like the people who work hard their whole lives in a job so they can retire well, without any guarantee they'll be able to actually enjoy that retirement.

The most straightforward way to solve this would be to ask the bank if you can put the HELOC in the LLC's name with the same collateral and a personal guarantee from you.

Some pros and cons I have heard from investors that I have worked with in the Section 8 market space are below:Pros:  Guarantee Income on a monthly basis from the government.  

Your lender may also request a personal guarantee document and a deed in lieu of foreclosure doc to further protect their capital until you have multiple deals with them under your belt. 

This includes co-mingling of funds to make an investment, you pledging a guarantee personally on a mortgage note, etc.When using an IRA to invest, everything must be done entirely within the envelope of the IRA and exclusively for the benefit of the IRA.

However we all no that nothing is guaranteed- any ideas on how I could pay off the HML asap?

Almost guarantee there is mold and other rotted wood from multiple holes in the roof.