I barely knew any accredited investors, as I was still navigating my way into that category myself.

Ned did not start out buying thousands of liens.That amount is a bare minimum, and it limits what you can buy, because you need to pay attorney fees, and other possible costs.  ($100 entry fee to bid)  I wouldn't bid more than 1000 with only 5k behind it.Make sure you understand all the rules about the auction process. 

My rule of thumb is that bare minimum I need to net 300$ month after all bills are paid.

Properties are barely cash flowing here .

My income increased by about 50% with my new job and I am barely over the income limit to qualify for a USDA loan with my current Salary.Technically I'm still below it, but in February I will receive a 5% raise which will put me above the upper limit.How will my income be calculated for qualification purposes? 

Hypothetical: If I take the Heloc and the cashflow is barely enough to cover the HELOC payment, I am still good with having a property that is appreciating and I can potentially sell or refinance later? 

I think having at least $1000 saved up should be the bare minimum before you get started.

The rental comps appear to cover my expenses barely if we where to rent the property today, however, there would be no capx, vacancy, repair and maintenance coverage.

You could see the bare sheetrock.

You also need to see if the house has been updated vs original (like does it have 1970s pink tiling in the bathroom).