I'm an Italian investor, and I will say that long term rental is a very risky option.

No - absolute max for DSCR is 85% LTV and that is extremely rare and typically not workable in this rate environment anyways.Standard/common max is 80% (acquisition and rate-term refinances) and 75% Cash-Out Refis

I wanted your typical 3 bedroom house (not necessarily 2 bath) which cash flows.

These are the options we are trying to decide between… thank you in advance!

Aim for a credit score of 680+ for better refinance options.

If I have several options, I would prefer a HELOC with no initial draw requirements (i.e. to establish a literal line of credit that I have no specific short term plans to use), i.e. not something like the better.com HELOC. 

Typically these policies are also capped at a max interest rate around 8%.

Especially in a more competitive market where the options are plentiful.

Sometimes cities will allow this, but it depends on local zoning rules.If neither option works, it might be worth consulting a real estate attorney to explore your options.

**Navigating Inspections**: Section 8 inspections are stricter than typical tenant move-in inspections, and that can be a hurdle.