Would there be a better chance the banks will help me. 

Make a little now with a "line of credit" for next one at lower than bank rate.

If you want to buy investments, contact a local/regional bank or credit union they will likely have the best offerings for you in the long run.

You should have enough equity 40-50% LTV that some bank will give you a loan at that point. 

You can always go to your bank and have them send a denial letter for the loan, saying that they will not lend you the money due to the property not appraising for the value originally applied for. they then have no case against you and also have to return your earnest money.

Yes and sometimes you can talk to the banks representative that is at the auction and work a deal

Neither is inherently better, foreclosure may take more time because the bank is involved, but if they are both good deals both are fine.

Wanted to check with the community which banks are fairly friendly to investors looking for a HELOC on their primary.   

Issue them a 3 day notice (or equivalent that's required in your state) if they don't pay rent by the time that notice expires evict them.......Problem solved.Also worth noting that a daily fee may be a no go anyway as most jurisdictions limit the amount of late fees that you can collect. $35-$75/mo is a common limit for properties renting for under $1,000.

At first, it was hard to get the banks to take them seriously but now they 3 banks fighting over them to get the loan.