@Sean Ploskina What you are asking about is called RUBS (Ratio Utility Billing Services) and it is exactly what @Lisa Doud describes in her post.

Speculation is not a word I would use to describe the strategy.  

Can anyone describe how they used their HELOC to buy a place outright and quickly, then turned around to get a traditional mortgage on the same property?

From what you have described, you have every reason for concern.

As I described above, it's more of an option on future development, for a very reasonable price.

It sounds simple but I'm sure it isn't, basically it described the steps to take but not actual examples of forms to fill, where to get them, who to talk to, etc.

But no ones story in the beginning is "easy".My husband and I started the very way you are describing.

I have approached 2 management companies about renting this property out; 1 did not answer at all and the 2nd one did not answer after I described the property.  

If you have that kind of cash sitting around and you are dying to get into multifamily, you may consider a passive investment like @Michael Ran  described so you don't have to qualify for financing.  

The General Assembly, therefore, determines that it is undesirable for any person to be found liable for damages due to his or her efforts in the removal of snow or ice from such sidewalks, except for acts which amount to clear wrongdoing, as described in Section 2 of this Act.