Purchasing Second Home and Using Current as STR/MTR

[Lydia Wright]

I'm currently in a 2b/2ba in East Nashville. I just took out a HELOC on my mortgage (conventional loan) with the hopes of buying a larger place in the same area, and using my current place as a short-term or medium-term rental property. My cash flow would range from $600-1000+/month on this property.

My HELOC could cover a good portion of the down payment necessary, but was hoping to get some guidance on other creative financing strategies/tips so I can begin to have some cash flow on my current house. My credit is average right now after my divorce, but is trending up! I'm eligible for a FHA loan for the future property.