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My question is , they make small split units ac/heater like the Mitsubishi that start around $700 and go up.
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You won't find a Mitsubishi split unit for anywhere near 700 bucks.
A small, basic Mitsubishi indoor air handler and outside condenser will probably run at least five times that amount - Plus the extra materials required for installation, plus the actual labor cost of installing it.
Some of the Chinese kits start at around 700 bucks - But you also have to add some installation cost, unless you do it yourself.
Would it be cheaper to buy and install these in each bedroom and one large one for the living area ? Complete Central Hvac starts at around 8-10 k
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Depends on what mini split systems you choose, what number of rooms you have, who installs it, etc.
If you have a pro install half a dozen Mitsubishi split units, it could easily end up costing you a LOT more than a central HVAC system.
OTOH, if you install a few cheap Chinese units yourself, it could be quite a bit cheaper.