If you are the first person there, when the second person arrives, you will naturally start speaking with them.

I don't believe the distressed nature of the property will make a difference as a HELOC is really a revolving line of credit for you to use. 

Consider that by the distressed nature of the property, the back taxes, etc you can assume that multiple investors are bombarding the seller with mail, and most of that probably goes to the trash.

I didn't even consider the down to business nature of investing.

I can do everything above board in the light of transparency without having to run around behind the scenes like some seedy underbelly black market.  

But at the same time if its just a little garbage; a few light bulbs here or there; a little sponge mopping; I don't sweat it and just do it and move on to the next tenant move-in without backcharging as I hire a cleaning service anyway every time inbetween tenants."

So, safest thing to do is probably send them written notice at their 60 to 30-day mark (sooner the better) that advises them, pursuant to the mutually agreed and signed contracts, since they failed to exercise their option to purchase they may now choose to transition into a month-to-month lease or move-out at the natural expiration of their lease term on whatever date. 

My negativity has been an issue and I have begun to see the light with  positivity.

As to not catch unwanted attention from the mortgage lender regarding the nature of the transaction, and thereby possibly triggering the "Due on Sale" clause in the mortgage i tend to avoid unnecessary contact with them.

Make sure your sellers sign a memorandum explaining the risks involved in the transaction, and they're aware of the repercussions of informing the lender of the nature of the transaction.