Hard money should be somewhat of a last resort if the property or credit can't qualify. 

as Update to this post from 6 years ago, there are heloc's on owner occupied 2-4 unit properties up to 89.90% CLTV or combined loan to values (meaning multiple loans but all together not exceeding 90% of the value).Terms typically areinterest only first 10 years and drawable from the lineyears 11-30 its Principal and interest payment Prime index/rate + margin (this portion is fixed but prime is not)underwriting is done assume prime + margin + 2% stress test for underwriting meaning if your prime + margin was 10% then your underwriting rate used to determine your maximum line you can qualify for would be 12% rate as an example based on principal and interest payment over 30 years or 360 monthsIncome is the main determinant of your qualification and fico min 680+ is just the min score to get through the "front door,"Maximum DTI or debt to income allowed is 45% DTIMaximum lines on this product go from 500-750k so you can get a decent line size that can actually buy other BRRR's or fix flips and deals.

I don't know the Philly market but what is the likelihood you would find a more qualified tenant to rent a downstairs unit that needs work for $1K a month? 

You can register your Wyoming LLC as a foreign entity qualified to do business in Alabama.

With providing some rough numbers, my extended work experience with my company, and my credit to the lender, he informed me that I could potentially qualify for a $250k property with an FHA loan and a conventional down payment assistance loan which would put me with little to no money down out of pocket.

If they don't want to pay then you keep it listed in case another qualified tenant can move in. 

One lender even "qualifies" people into 5% down loans.

Homestead Exemptions If this is your primary residence, then apply for the homestead property tax exemption and any other exemptions that you qualify for.

If your goal is to acquire additional investment properties in the future, you are better off starting out with a traditional rental, whether single family or multi-unit, compared to a vacation rental or Airbnb, where the income potential might be higher but won't be used to help you qualify to purchase other properties in the future.

.- you can use any part of the HELOC  you want to ...make sure the lender you are  using for the new loan will be able to  qualify you with the  HELOC  funds  being used  (  some  lenders will  use the  actual payment on the  outstanding  balance and  other lenders  might use a percentage off the entire HELOC max limit )