Restrict your consumption (e.g., TimFerris stoicism-style) and avoid a property purchase for your primary residence, unless you intend to house hack over and over.

Assuming lender restrictions stay the same, if you were to get a cash buyer or someone using conventional financing - non FHA, it wouldn't be a problem.The property my wife and I just bought has a duplex up situation that was marketed as a 6 bedroom and 2 bath duplex.  

Just a matter of finding out whats right for us given our restrictions not being able to leverage (through banks and lack of a credit score at this stage)

I don't have any restrictions on how I can use the heloc.

I don't know if you're aware but this building is under rent control and the 2nd unit's $1,900 rent cannot be raised much and there are tight restrictions on removing the tenant.The type of buyers this property is perfect for are two separate parties (think friends or siblings) buying it as a TIC with each party occupying one unit.  

Conventional financing will be cheaper but it will come with more restrictions.  

The lease agreement you linked to is out of date and I'm not sure if the current agreement covers your questions but there are legal parameters regarding penalties you can impose on a tenant.    

Even if it's 30 days banks take WAY longer and have more restrictions....the loan could get denied vs. a cash deal won't!

My two cents: avoid condos because there's a lot you can't do when you join a condo HOA and you don't want your investor freedom restricted.

I give one warning and then impose the late fee or give the lease violation letter.