For active investments I advocate considering how you can diversify WITHOUT ceding your competitive advantage nor the superior profitability of the niche your in.As an example my business is running an investment fund and syndication high interest commercial mortgage loans secured by income producing real estate. 

@Collin Luckett  Just adding, if you have the ability to fund with your HELOC, it would be far cheaper than PML or Hard money. 

I’m about to launch a fund and start building new builds.

May be worth it to check with a cost segregation company (depreciation) and start scouting property management companies.Someone smarter than me could probably tell you about taking a HELOC out to fund the next investment property in TN.

You can use your own funds, use a HELOC or do a cash out refinance to cover the costs.

FHA gets a bad rap because sellers and many agents think it's only for people who don't have the money so if I had 20 percent, but wanted to use FHA, I would present a proof of funds with my offer showing I have more money, but am using the FHA as a financial option so I can get an investment property as well somewhere else.

Again, treating folks with housing support funds with the same dignity and respect as everyone else, usually nets quality clients that listen and do their best to follow the rules.

For instance, do 2/2 properties typically have longer average stays, or are they more desirable?

Then you'll have to figure out how you fund the project (land purchase + build costs).

PM companies who charge a flat fee have no strong desire to rent out your place because they get paid either way.