You will just want to make sure the property cashflows well enough to pay the HELOC payment or you have an exit plan to pay off the HELOC. 

My plan is to live in the house while in the area and either rent it or sell it once I decide to move.

We plan to keep most of our portfolio in Knoxville.

I’m active duty Air Force retiring next year.What are you planning for your first investment?

We plan to move forward with the sale either way and I have recommended the mother to seek representation, but where I'm lost it, why would anyone, prefer and eviction over Cash for Keys?

You think it will be passive because you are planning on hiring property managers, but that's a big cost for one property and you still have to manage the manager or your cash flow will dwindle.The way you are proposing what you want, you may get caught in a turnkey funnel and end up with less potential scale on the investment than you had hoped.

I think I need to submit a floor plan as well with application for occupancy?

There are far more important items you should be prioritizing but first so I am clear on the strategy, it sounds like the business plan is to go under contract, renovate the building and then purchase the building once renovated and stabilized?

(I’m planning on doing a 1031 exchange) 

Picture this: After weeks of negotiations and planning, all parties involved finally reach an agreement on the terms and conditions of the sale.