I'd do it on a terms deal. 3yr in total. 

HELOC= short term useFixed (first or second) = long term use like a down payment.  

Not sure if I'm doing something wrong but the map here used to shaded in terms of the filter selected (i.e.

Then there’s city regulations—some places heavily restrict short-term rentals, so you’ve got to check the rules.If you find the right spot and automate stuff (guest communication, cleaning, etc.), it can be profitable.

If you can find a fixer at a good price, with room for an ADU, and the comps are good, then you have a deal.Are you planning on flipping or long-term holds?

I am paying a bunch of interest on the short term loan, with no timeline or updates.  

In that scenario - I would worry that our long term renters would not like that strangers are walking up their steps and entering the doorway 5ft from their front door every weekend. 

As a long-term hold investor, I see this property as -$600/mo to -$800/mo depending on whether you use a PM or not.

However, rezoning now could still offer some advantages depending on your long-term goals.

Just be willing and prepared to make it a long-term investment to get you mentally and financially through any bumps in the market going forward.Good luck!