With a HELOC, you have no extra expense (some HELOC has annual fees, but they are low - like $100 - $200 at most which is negligible) unless you actually pull the cash out.  

@John Trommelen there are lenders that will go as low as 15% down but you will have a higher rate.  

Your revenues seem very low at 53k/year. 

If they pay low rent then they could still be below average for sales but make a profit.

Quality of tenants?

Is the demand just low at this point?

C = lower middle class housing, more multi-family mixed in but decent places, some crime but low-level stuff nothing dangerous or violent.

The issue I find in my area is the rents are very low which make it difficult to work the numbers.

And even if I can open a Solo 401K with that low amount, I heard that if I stop making money in my LLC or close my LLC you have to close your Solo 401K and transfer everything into a regular 401K.

We especially liked transforming the house into a home, and hearing the buyer compliment the quality while we were at the closing table.