If I move out, what is my best option to find another place for me to live - I won't be able to afford a down payment for a second duplex at that time, nor should I purchase a permanent residence in a Single Family Home, because that will be adding another mortgage without addition rental income, and I can't afford that.There is so much creativity and gray area in Real Estate investing and I am here to draw on everyone's past.

Probably the best thing to do, since it sounds like you’re fairly new to this, is spend a few hundred dollars and have an attorney draw up a contract that will cover you and that (most importantly) you know will be legal and that you understand. 

This money would be escrowed and paid to the contractor with draws from this account.

In this case, I think you're looking at the loser properties (because all the winners were sold quickly and often for list or more) and trying to draw sweeping conclusions about the state of a very complicated market.

If there's additional funds set aside for rehab, more than likely there will be some sort of draw schedule established with the HML for those. 

The money is released in increments, called draws, as the work is completed.

OR should I just use the attorney to draw up various contracts and use title companies to close always?   

If I were to open a line of credit for 15k, what would you (the community) suggest the max I draw at any given time?

I'd like to avoid changing anything structurally so I don't have to redo the drawings and permits.

I found Keybank two years ago at 90% LTV with a 15 year draw period at prime rate minus -.25% rate.