Quote from @Micah Huffman: I am considering relocating to Nashville for a job promotion that would be a 20% increase in pay possibly more.

Initially I really wanted to do a STR down in North Padre Texas (as it is a place I have vacationed for years and have stayed in at least 8-10 of the STR in the exact complex im looking into, I see how my STR could stand out amongst the rest since Im huge fisherman down there and that is mainly what those STR are used as, already have boat rental option setup if I go this route, list of fishing and possible guides to go with depending on style of fishing, family, fun, hardcore wade fisherman etc etc and equipment rental available for those that do not have.), the places im looking at are decent $ properties that after running through calculators etc showing 18-22% CoC after management fees etc.But after listening to BP for about a month, now thinking BRRRR possibly and doing up here in the DFW area.

So rather than overemphasizing WHICH market to chose, emphasize finding the right mentor/coach/team because it is possible to fail in a good investment market when you do not know what you are doing and to succeed in a more challenging market when you do know what you are doing. 

Beginning my house hacking journey and looking to connect with as many other investors in our area as possible. 

What is the standard process from start to finish so we can eliminate as much risk as possible?

We would have to come oop about 400-450 for 2nd HH.Also planing to use other rest of heloc for a dscr or brrr so that would possibly help as well.Would you wait until rates drop to do another HH and just buy the brrr/dscr now?

If these units were converted several years ago with permits, is it possible that the permits are not available with the city anymore?

If indeed a loss is taken on this which it sounds like is a fair possibility then if the agent was representing you the agents E and O will/could kick in and that's where you might get some financial relief.

I should probably add, that I do the same thing here: most of what I bought in the last 3 years does not much better than break even, but I am buying in the best possible neighborhoods that still work as a rental.

I highly recommend you play with that tool to start getting an understanding of what things you can do to positively affect your credit!