Does it mean that you have to finance through a bank or other resources for the balance of required funding?

Normally the investor will have to make this attractive to the PMI Company by placing a large deposit towards the purchase of the property.If the lender sees that the borrower has equity and is making serious efforts to market, the property the lender will generally delay foreclosure for a reasonable time to allow the property to sell.The lender will probably require the borrower to make full or partial payments during the marketing period to keep the overdue balance from growing.You as an investor can front all the cost as part of your purchase agreement.

I would also note (as I am sure many people are already aware) that our market in Vegas has become "reasonable" and much more balanced in terms of what sellers are listing homes at. 

> to me reserves are not on the income statement and are balance sheet item > the brutal reality, yes, rents are set by market then sell or go bankrupt.

I am not a rule follower and I am a maverick, mustang, renegade what ever you wanna say at heart, but my wife is, and she balances us out perfect as i am quick to give someone the proverbial middle finger and speak what i want, while she approaches things much different. 

But please, my pressing question is thus, after securing a property out of state, how am i gonna get a reliable contractor for the rehabilitation and how am i gonna be rest assured that after paying the contractor, he would execute the rehab job considering the fact that i won't be there in person for checks and balances?

One of the hardest things I have found is to balance my style & tastes (This place is cool and unique, I love it!)

Essentially, they teach you to have a mix of installment and revolving credit (i.e. a loan that has an end date vs one that stays open indefinitely) and to keep balances active, but low.

Would the bank require the Heloc be paid off 1st or can I pay it down with the remaining balance after the rehab is complete?

We all struggle this battle of balance.