My wife and I just bought our first condo over the summer and plan to turn it into a rental later on down the road.

I think your plan has merit. 

Yes, definitely open up a HELOC even if you don't plan on using it.

I plan on driving alot to find distressed or run down multifamily properties that possibly are owned by an out of state investor and reaching out however would like everyone's opinion or personal experience on some other creative ways.

Initially, our plan was to fix the drywall leaks, clean out the property, and relist it for a small profit.

Initially, our plan was to fix the drywall leaks, clean out the property, and relist it for a small profit.

It’s an interesting opportunity if it aligns with your overall plans.

I'm also a big fan of backup/contingency plans.

I've also had a couple evictions/ask to vacate on properties where the tenants were constantly behind in paying.

Are you planning to rent the entire unit at the 2nd year mark?