Fix it properly, then rent it out to a highly qualified applicant. 

HI Stephen,You can always open HELOC or line of credit from your primary house or non primary house, assuming you have sufficient equity and income to qualify.

The most qualified applicant in my opinion is a family of three, whose credit and background checks are clear. 

If you make enough money to qualify without counting any rents, no worries. 

Next, I would find out who the attorney(s) is in your area that is known for regularly dealing with the Zoning Board.

We used to do all the qualifying as agents, push the loan officers who didn't want to work to get the job done, give comps to the appraisers etc. etc.

Seems like it would be a good place for economic development.Cool city, with great prices and really not all that far the the "Big" Cities.Probably has a good workforce of hard working people.How do you feel like your economic development board is?   

A novice going out of state to start is an absolute recipe for an unmitigated disaster -- just look at the out-of-state threads on this board.

Convert the Property to a Primary Residence: If you live in the property for at least two of the five years before selling, you may qualify for the primary residence exclusion, which allows you to exclude up to $250,000 of capital gains ($500,000 for married couples) from taxation.4.

If applicants can't qualify on their own, I don't rent to them.