If you're liquid, loan the funds to the buyer outside of closing. 

OR, if you're able to assume a low interest rate FHA or VA mortgage (but you need to have the difference in price vs the loan balance), that's an option too. 

With my low rent when I calculate the numbers for a duplex I would pay the same I pay in rent while I live there.

Here are some considerations for each option:Option 1: Using the HELOC for a down payment and renovation on a second property to rent:Pros:You can leverage your existing property to acquire another investment property without selling your current home.Rental properties can provide a steady income stream and potential long-term appreciation.You can use the HELOC funds for renovation, which can increase the property value and rental income.Cons:You'll have to manage the property yourself or hire a property manager, which can be time-consuming and add to your expenses.There is a risk of vacancies or unexpected maintenance costs, which could impact your cash flow.You'll have to pay back the HELOC, which will increase your monthly expenses.Option 2: Building a new house in a new community and selling it for a profit:Pros:You can potentially make a significant profit if the market is favorable and the property value increases during the construction period.Building a new house allows you to customize the property and potentially attract more buyers or higher rents.Cons:This strategy involves a higher level of risk, as you're betting on the market to appreciate in a relatively short period.There are many unknowns and potential delays in the construction process, which could impact your timeline and profitability.You'll need to have a good understanding of the local real estate market and construction costs to ensure that your project is profitable.Before choosing either of these strategies, consider the following:Research the local market conditions in Chandler, Arizona, to understand the current demand for rental properties and new construction homes.Consult with a real estate agent or investment advisor who has experience in the local market to get their insights on the best strategy for your situation.Evaluate your financial situation, including your income, expenses, and risk tolerance, to determine if either strategy aligns with your goals and financial capacity.Consider the tax implications of each option, as this can impact your overall profitability.Create a detailed financial plan for each option, including projected income, expenses, and potential risks, to help you make an informed decision.Ultimately, the best strategy for you will depend on your unique situation and goals.

For investment properties, you'll never get a bank loan with that low of an LTV.

Does the down payment and income requirements make it difficult for first time or low income buyers?   

It would depend on these numbers as there are opportunity costs for not selling the house.Since you have a lot of equity, not doing a cash out refinance could be costing you more than keeping the low interest rate. 

It is not a highly desirable place in Indy, it is more of a low C/D area.

I was thinking about it to fund larger investments STR's etc...  

My mortgage broker is telling me this is an up and coming area that is low risk, high reward potential.