Lenders (maybe even the state), wanted to give locals a chance to purchase their home.I dont see a problem with investors needing to come in with 20% down.

Large investment in a failed area,City should be paying investors to take those chances.

You won't get cash flow while you live there, but you'll have a much larger selection to offer on, giving you higher chances of finding something that's actually a deal from an ROI standpoint. 

There's a very good chance the issue(s) you face have already been discussed and answered.Ask questions in the appropriate forum.

I was wondering if anyone would be able to give advice on if there was a chance of getting a HELOC in my current situation.  

Your chances of winning are close to zero.

This why I can so easily say NO, if it were '08' all over again NO, 99% of you would NOT be buying like you lament and promise if ya just had a chance.

Assuming I buy a single-family home in Washington as a primary residence (better chance of being approved than a Multi-family).

Please ask your question once and give people a chance to answer.Call the Housing Authority and ask them.

I think AIrBnB and Vrbo has some automatic adjustment for our listing on the off chance that there is a big spike in demand for a big concert or SportsBall (TM) game coming into town.