Also, I am assuming since you house hacked that you only did 5% down, which then increases your mortgage payments compared to 25% down buyers.

The carrying costs are low, but tenant was making partial payments by month 2.

I am currently in the planning phase of my real estate investment journey and had a few questions I’d like to ask someone more experienced.Would it be smarter to focus on paying down my own mortgage and then use a HELOC as a down payment for my first investment property, or should I simply use my savings for the down payment instead?

You have to borrow your equity and then make payments on it.

I'm very new to investing and weighing which options would benefit me the most.Option 1:  Use the cash as down payment on another primary residence and rent out the current.

I am looking at different loan options but to break even (not having to put any money of my own in the house after the initial down payment) the current down payment required is that much. 

Syndicators do this because most passive investors are not sophisticated enough to realize the "security" of the preferred return means they usually are giving up the potential for massive returns if the deal does well.This next comment would apply for all syndication.  

I wouldn’t want to hold the loan for too long, so ideally it would be a 5 year term, presumably ballon payment at the end.

However, my debt to income ratio with that home loan, and student loan doesn't look that great currently and I don’t have much for a down payment.

.: Quote from @Travis Biziorek: Hey Amit,Section 8 is definitely appealing to a lot of out-of-state investors because of the perceived stability of government-backed rental payments.