I wanted to apply for home equity loan for investment property but I am not sure when its more beneficial to do it.

That may translate to your start applying to real estate oriented jobs while you still work your day job… or more sweat equity on your days off to learn more and more.  

When applying for a mortgage loan...

Thank you.Learn, Apply, Produce!

I have seen cases where the rule is not applied, but this would be a risk.  

I recall seeing a recent post from someone else in a situation like this, he even paid the collection but score is still too low to apply for a mortgage.Certainly speak to an attorney to double check your options.

@Aqsa MugheesRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Different rules apply to brokers and property management companies, but the state is much more Laissez-faire with unlicensed homeowner landlords.

For some reason, if the current owner applies for the rental license, they don't get flagged while the new buyer has a higher likely hood of running into trouble. 

Personally the only thing I find awkward about it is that you have to "invite" people to fill out the application or pre-application by their email or phone, I'd rather have a link to apply that I could post on my listings rather than have people message me then I have to collect the email, then send them the application, but that's just a minor inconvenience for me.