I did my first 203k about 4 years ago and it sounds like this property would be a candidate. They allow you to finance the purchase price of the property. The repair costs as quoted and contracted for are held in an escrow account to be paid out as the work is completed by the contractor. These loans take about 45 days to close if everyone is on top of their game so you need to check your timeline.

Your best source of information regarding any additional loans, as it specifically applies to your situation, is your loan officer, contact him/her and ask.

You will have much more trouble with this scenario than you would have 2 or 3 years ago. A number of questions would need to be answered to provide the best answer to your question, but here are some options to consider.

1. You may be able to do exactly what you want - in particular if the HELOC doesn't need to be more than 10% of the property value - so you still have 10% skin in the game. You should check with your agent or mortgage professional for details on your specific scenario.
2. You may want to consider putting less down and simply using cash for the repairs and renovations.
3. There is a new mortgage product on the market designed for homes needing renovation. It is a called a 203k. Check out the information on HUD's site here: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm.