@Arthur VoskanyanIn these parts, a home equity loan is generally another term for home equity line of credit, but YMMV.It sounds like you are comparing a fixed term, fixed rate loan - ostensibly secured by a mortgage - to a HELoC.The are two different instruments which serve different purposes ... some of the differences are:Mortgage secured financing:entire amount being withdrawn is advanced at once and repayment is amortized over a specific period (typically 25yrs in Canada, 30yrs in the U.S.A. for residential financing).the term of the loan may be the same as the amortization (common in the U.S.A.), or may be shorter (anywhere from 6-months to 10years in Canada).the interest rate of the loan may be at a fixed for the entire term of the loan or may be variable.there may be limits on prepayment of the loan (without penalty).    

First,  Why would you invest using a tax deferred instrument (REAL ESTATE) inside a tax deferred self directed IRA? 

Investing in debt instruments you’re looking at a top limit on ROI, often with an investment with a finite life.  

@Mark DavidsonYes, a Solo 401(k) can use debt-financing as you suggest, so long as the debt instrument is non-recourse and everything is isolated within the plan envelope. 

They don’t keep commemorative plates and collectible spoons, but they keep clothes, kayaks, bikes, Christmas decorations, old computers, instruments, tools, etc. 

Infact, I'd say if you these houses make up a higher portion of your NW it's more instrumental to protect them.You don't need to layer in trusts, etc.

What a long road to haul.As I understand it, as I have never reviewed one of their instruments, the family is obligated and the obligation is to some extent automatically assumed upon the passing of the elderly family member.  

Also, I should have mentioned, in case it's relevant, that this vacant property was served an instrument of taking by the town at one point in time (in MA this can happen apparently if the land has a value under a certain amount) before it was later granted a certificate of redemption when the owner finally paid their taxes and penalties a year later.  

The kids should be required to have something like a Texas Instruments Business Analyst calculator and then learn how to use it.There should be general topics on investing in things like stocks, mutual funds, ETFs, and of course real estate. 

Offering a month's leaseback at $1 per day was instrumental in our getting our offer accepted on a fixer last August.