I keep a paper-free office because I don't have the luxury of a file cabinet ( the Twins would have taken it apart ).  

Speaking from experience, it is precisely as John says, making the work far more manageable for the contractor if a particular phase can be focused on, and with the ongoing cashflow by way of draws it helps to eliminate any potential issues with the guy "running out of money". 

Generally speaking SFH are more ideal and easier to resell and rent in my opinion.

Again, I would speak with your accountant.

You would need to speak with a mortgage broker to see if this can be done via traditional loan.

I'll be speaking with the seller tomorrow, who is already aware and warned me of the issue.

The question I have is, in order to make it rent ready and not to spend too much to make it look so luxurious, what are the basic things that a rental home will need with low maintenance.

And you speak here of a 10% Realtor commission and a $5K kickback?

I am having trouble because every bank I speak with says the property must be owner occupied to use a HELOC.  

I know typically speaking FHA or VA doesn't do one loan for multiple parcels.I have heard that if it is on the same deed then FHA deal can be done?