This is a single family home and was originally a primary residence before turning it into an long-term rental.Some strategies I'm considering to grow my portfolio are using a HELOC/1039 tax exchange to purchase a second investment property/multi-family property or refinancing my current investment property into a conventional loan to utilize another FHA loan for a primary residence (with the idea of eventually turning that into another long-term rental).I currently have a 7% interest rate, and am considering refinancing in the coming months if/when the rates drop.

Check out BiggerPockets Agent Finder that can help https://www.biggerpockets.com/business/finder/agents2) Utilize something like AirDNA.co to see their data for different areas you may be interested in.3) A simple way is to look at Airbnb and see if there are places listed in the complex you are looking in.

There is a high cost to renovating a non-restaurant space into a kitchen, especially if you need everything like grills, hood vents, walk-in coolers and grease traps in floors, not to mention the utilities to service all of the above.

In most cases they do not want the tenant paying greater than 30% of their income for rent and utilities.

. - Some credit bureaus and services (like Experian RentBureau or Esusu Rent) offer alternative credit reports that include rent payment history, utility payments, and other recurring bills.

- HELOCs are best utilized when they cover the entire purchase.

Let's assume for a moment that townhomes are an approved use for your property, I would want to quickly determine the availablity of all necessary utilities to service the property.

Checklist: Here’s a quick checklist to get you started:Get a home inspection (optional but recommended)Fix any outstanding repairs or issuesCreate or customize your lease agreement (covering pool/fireplace)Set up tenant screening processesTake detailed photos of the propertySecure proper insurance (consider rental-specific policies)Establish a move-in/move-out inspection processClarify utility responsibilities in the leaseConsider a property manager if you prefer hands-off managementDon’t worry, you're on the right track by doing your due diligence.

For that you have to utilize our 2-step program (as referenced  above by @Clint Jusino) or wait the 12 months for a conventional loan. 

It all comes down to utilities, and insurance.