It seems pretty common that houses in Austin (older parts of town) have title and heirship issues. 

IE in many areas you have historic platted lots  say 25x100 and you had one person buy say 4 lots.. well the assessor to make things easier on their office would combine the 4 lots into one for tax purposes ( common) at least out here on the left coast. 

Is it common, no.

If going to buy a house or small plex and you need a mortgage, I'd explore buying as TIC (tenants in common) with %s listed and have a JV agreement. 

We have one of the lowest mortgage default rates in the country.Redfin also says that as the pandemic slows down more people will choose to live in cities where rent is more common.

My understanding is that is a common form for mortgages for second homes.

I don't know much about HOAs as I don't invest in any properties with them but I believe your HOA covers insurance on the building structure and common areas. 

This scenario is common around the Disney area.

Is it very common to use LOCs, whether heloc, business or personal to buy real estate?

Hey Emanuel,I've originated a fair amount of FHA loans, and this is a common struggle.