If I'm just bringing the deal to the table am I not wholesaling it out essentially?

There are some HOA's out there that will only allow a certain percentage of units to be rented out and may have some other restrictions in the CC&R's.As for your question, the "best" way of doing something in real estate is typically subjective, but having a HELOC payment, in addition to the mortgage, taxes, insurance, and HOA dues, just increases the chances of having a less profitable property or one that may not cash flow at all.

@Mark HillWhen you do Subject to, you typically don't tell the lender so that they don't call the loan.

@Dillon SealHard money lenders typically only lend for short periods of time.

I will fix it up to essentially live in one and rent the other half. 

Typically you need an exit strategy for any HML because you don't want to pay the points/fees for a long period of time, as that will eat into your profits.

Personally, if no windows, electrical, plumbing or structural work is being done I would just get it done.....typically no permits are required for that but theusually are supposed to have “some kind” of license...here in PB county it’s not just the regulated contractors (gc’s, plumbing, electrical, ac, etc) but guys just doing painting, Sheetrock, etc. .....not that it happens all the time of course.

Properties that are 1-4 units are typically sold based on comps, not on cashflow.

Typically a price drop or an improvement to the unit (or both) will get the trick done.

For example 10% down payment is very normal and setting up a rehab escrow for 95% of rehab costs is typical as well.