Without understanding the full picture, I would agree with the previous posts regarding the HELOC - as long as the new cash flow covers the HELOC.  

I'd love to meet up some time or talk over the phone about what opportunities there are right now and help you understand our market a little better.  

I understand what you mean about the area you are in.

I live in San Diego and understand what the SoCal market is like. 

Brian in addition to what @Rick S. mentioned, I would also have the seller have the tenants sign a statement - which you will provide - that they understand they must move out within 30 days after closing (which will actually be longer for them considering it seems like your just in the beginning stages of purchasing) and then assign a dollar amount for each day the tenants much pay for each day they go over 30 days - think incrementally, to give them an incentive to move out.

I am more than likely going to obtain my license to just help gain an understanding of the workings of the real estate business and laws. 

I do have a rough idea of how I would like things to turn out, and whether or not it is reasonable I won't really know until I further my understanding of investments. 

I'm not understanding pricing here. 

My understanding is that the contract for deed has the same due on sale clause risks as a subject-to, and gives me less legal protections.

I understand what it takes to work hard, sow all day / night and wait for the fruits of the tree to develop before one can reap.