That said, I prefer to use a HELOC for short term investments like fix & flips because I only pay for what I use and I can continually keep recycling the money.

This seems more of a preference item on reporting, but I wanted to get more insight on how these transactions are structured. 

I'd like to connect with someone who knows the local market as this is where I would prefer the property to be at since it is close to me.

Those people overlooking what it means to “materially participate”Here’s the Material Participation Criteria:Spend more than 500 hours on the short-term rental businessDo substantially everything for the STR businessSpend more than 100 hours on the activity and no one other individual spends more time than you doSignificant participation activity for more than 100 hours, and your combined activity in all significant participation activities exceeds 500 hoursParticipating in the business for five of the 10 previous taxable yearsPersonal service activity (non income-producing) for three of the previous taxable yearsRegular, continuous, provable participation in the business for more than 100 hoursA Cautionary Tale: The Story of JacksonLet's take a moment to learn from the mistakes of others.

@Jordyn Gegg - I have a PM company that oversees all of my individual LLCs.

Quote from @Brody Veilleux: As far as I’m aware, FHA loans are only for individuals.

If individuals and/or LLCs are the beneficiaries, then it is doable. 

The home sold for 135k to an individual using a VA Loan.

It was left up.This particular individual would have really went off and done personal attacks if anyone would have been bold enough to challenge what he was doing openly.

(Again, I know it's preference and variables but generally and in your personal opinion with your experience).TThank you in advance for your input here.