I'd like some input on wrapping my head around a potential first house and if this sort of deal/rent makes sense.

Hi Tom, I would reconsider taking out a full two hundred thousand dollars for a HELOC unless the numbers make sense in terms of possibly making that money back and paying off the loan. 

Makes total sense.

Starting a hard money lending company makes sense to me since I have hundreds of contacts in this business that I've built relationships for years, as well as it aligns with my origination background. 

Might make sense to have a in depth conversation with a Banker to run the numbers on a Fannie Mae 5% down versus an FHA 3.5% with the higher MIP.

It would make no sense.  

It doesn't make sense to partner with complete strangers on the internet that are mores likely to use your money and screw you over.

If both the criteria make sense, I am looking at the property in person and planning to make an offer if within my budget.

After weighting all of that, does it make the most sense to try to keep this tenant in place? 

This gave many the false sense that real estate is simple but its not.