Credit score shouldn't be the primary driver of tenant approval, because if they could qualify for a mortgage they probably wouldn't be renters.

If you use the Heloc option and decide to rent it out, don't forget that property (or you) will have to cover both your primary and secondary position notes.I don't personally see Marin being a great mid term market.

There's a decent chance that if you have good credit and improve your DTI over the next year, you can put a Heloc on the property while it's still your primary to unlock some of that equity if needed.

If I pay for it initially with my primary residence HELOC , currently at 8%, the interest only payments would be $640, so $1,340 monthly expenses mostly. 

Don’t forget heloc, DSCR, 2nd on primary, borrow from retirement accounts, credit card cash advance, property reserves, home improvement store credit, etc etc.

I think the real estate professional strategy works if it is your primary source of income.   

Lemme get this straight: you want to sell a subject to as part of a subject to.unless your buyer is doing a targeted satisfaction of the primary loan, I don’t see this working at all.

We have HELOC money available from our primary and one of our rentals at about this same rate, so that could be a backup plan.

I have the funds available today for the purchase of a rental property as well as a primary residence, but I also want to set myself and my wife up to reach financial freedom.  

Pay it off and then buy a new primary and turn your current home in to a rental.