So I am out on an island now, scrambling to find a GC and subs to complete the project.For context, we have a HUGE electrical cost that we didn't anticipate; between 20-30K of electric, we need around 10-20K in HVAC and 10,300 in Windows.So we are at approximately 50,300 with no renovation done yet, although we have done the DEMO.We have not pulled any draws from the bank from the above 107,000, but I am concerned that we will not complete the project, because all the units need a TON of work(about 30,000-50,000 a piece).

I made a spreadsheet with all my questions about terms: qualifying rules, interest rates, %LTV, %LTC, loan term, can you extend term, draws, draw fees, closing fees, if appraisal needed, time-frame to fund, general contractor needed etc... 

I would draw up something that reinstates the lease with specific wording that previous terms are in place and that any future lease break would be handled as a new and separate issue unless you want to re-instate as M2M. 

You can hang them or pin them but then again, that can be annoying. 

While it will depend on your specific HELOC terms, some HELOCs have an interest-only draw period, meaning if you pay interest for 10 years (or whatever the draw period is), you never actually pay down the principal.So, if i was in your shoes, I'd first check traditional mortgage rates vs HELOC rates. 

The bank gives you a limit based on your equity and you can draw on the money as needed.

Borrower agrees to pay to the order of Lender under this Promissory Note (this “Note”), for each and every draw taken hereunder, a fee equal to THREE PERCENT (3%) of the total amount of the amount actually drawn.

Title company insures the closing, they don't handle construction draws or pay the buyer.

That puts me at a 130k draw on the HELOC but turns that 130k into cash flow within 2-3 months depending on contractors. 

And the neighborhood will be cleaned up instead of drawing in vagrants.Overtime, the owner will either develop  a relationship of trust with you in which you can arrange a purchase, or at least help her prepare a will.