I require 650+ Credit, no violent crime or theft, 3X monthly income, and no prior evictions.

The rental income from the first home will pay for the mortgage/monthly costs.  

It’s crucial to ensure that you’re compliant with local zoning laws and HOA regulations related to vacation rentals, as these can affect your ability to rent the property.Overall, while it can work well, especially if you're looking for income from rentals, make sure to have a clear understanding of the financing rules, potential restrictions, and the financial risks involved.

And both types take into consideration projected income but the residential loans go against my DTI.

IF you have super strong income and you and have a lower 1st lien, lots of equity - MAYBE your best bet is using a local bank or CU to get most competitive HELOC inv terms.

Analyze Rental Income PotentialRun the numbers for your specific property.

Can you be financially free, sure, consider if you are buying real estate you will no longer have stable income to get a loan.

But, if the end goal is to have truly passive income you have to eventually build a hands-off turn-key operation or outsource the work. 

Insurance-  we had 18 months of full lost income coverage.  

I wonder would the rental income cover the monthly interest payments on the crypto loan?