You renovate and create a nicer monthly rental property or operate as extended stay / STR for business travelers.As for the dining hall and restaurant you can convert to amenities like a gym, common area, event space, co-working space etc.You do not want to use hard money for something like this as it would be very punitive and expensive.

As has been discussed in other threads, in the event of true loss of job, no unemployment, no gov't bailout, no savings or liquidity, no other sources of income, a very small minority of tenants will truly be unable to pay rent.

Therefore, even if the seller has the ability toforeclose in the event of a default by the buyer, the asset might not be worth as much as it wasat the time of the original sale, and the buyer may have even contributed to its decline in value.

This is not a wealth building event.

- Check out the Events tab at the top to find local meet ups around you. - Find an investor friendly Realtor in your market.

As opposed to people who are choosing historic or beat up properties to help the neighborhood or make a higher return.

And, with our current events, you're probably getting more for your money as you repay the loan. 

That said, in the event I loose the property to foreclosure or some financial anomaly, would I be able to pull the 500k out of my HELOC without recourse if the bank were to take the home? 

I do understand that a 2.6% interest rate is much better than a 4.5% interest rate, however my reasons for considering this is in the event I lose my job or some other financial calamity that may occur.

The only difference now is that we have new uncertainties to deal with as opposed to uncertainties we are all used to dealing with.