However, if he does not accept, I think I can rent for $1600, however I would have to convert into an apartment layout, bathroom, kitchen, etc.

Hey Mark,I would speak with your insurance agent as they should tell you the requirements - fencing around the pool, gate with a locking mechanism, etc.I personally own a rental with a pool and the insurance agent walked my rental to ensure it was acceptable. 

You need a lot of properties to target to find both 1) property that meets your criteria and 2) motivated seller willing to accept your offer

Still, if there's no exit but I can live in the property that would be acceptable too.

You're not likely to get a lot of replies here because it really doesn't matter.You need a bank account that can send and accept payments.

Will banks accept that money from a HELOC as a down payment?  

You should accept it and move on.

The headquarters always blames the local office but never accepts responsibility. 

You also have to have a system in place to vet your guest (which Airbnb doesn't do anyway - all they do is "verify" their identity), create a lease agreement, accept deposits and payments and issue refunds of deposits.

However, you might not get all the answers because some multifamily operators either won’t provide certain information unless you’re in contract or have an accepted LOI.