You want to have an income qualification such 2 - 4 times the gross rent to qualify for the unit.

Usually, lenders don't want to write mortgages that small at all - no matter what your qualifications are. 

Each option has its pros and cons that can impact your investment strategy and overall success.HELOC (Home Equity Line of Credit)Pros:Lower Interest Rates: HELOCs typically offer lower interest rates compared to hard money loans.Flexible Terms: You only pay interest on the amount you draw, providing flexibility in how much you borrow and when.Revolving Credit: As you pay down the principal, the available credit replenishes, allowing you to use it for multiple projects.Longer Repayment Periods: HELOCs often have longer repayment periods, which can make managing payments easier.Cons:Qualification Requirements: HELOCs require good credit and sufficient equity in your primary residence.Secured by Your Home: Your primary residence is collateral, which means a default could risk your home.Variable Interest Rates: HELOCs often have variable rates, which can increase over time.Hard Money LoanPros:Easier Qualification: Hard money lenders focus more on the property’s value and potential rather than your credit score.Speed of Funding: Hard money loans can be approved and funded quickly, which is beneficial in competitive markets.Flexible Use: These loans are designed for real estate investments, making them suitable for purchase and renovation costs.Cons:Higher Interest Rates: Hard money loans typically have higher interest rates and fees compared to HELOCs.Short-Term Loans: They usually come with short repayment terms (often 12-24 months), requiring a quick turnaround on your project.High Fees: Origination fees and other costs can add up, increasing your overall project expenses.For a BRRRR strategy, a HELOC might be the better option if you qualify and have sufficient equity in your primary residence.

Now, detail on that 1 page your buyer qualifications.

Occasionally this presents investors with an opportunity to avoid a formal mortgage qualification process and obtain their mortgage privately from the seller(s) directly.

I could reject them because their credit score is a bit lower than my minimum qualification standards as well.

Make sure your rejection is in writing and says something like "you didn't meet our standard qualification requirements".

Will banks have any issues doing a cash out refi on deal like this assuming i meet all the other qualifications such as credit score and DTI.

Quote from @Rachelle Bisaillon: I recommend you include some of your key qualification criteria in the advertisement.

Looking for recommendations for a time tracking app suitable for real estate professional status qualification.