A HELOC is certainly an option if you could pay it off rather quickly or else you'll end up paying a whole lot in interest layer one. 

However, short term rentals are much less passive than long term rentals and are essentially a hospitality business, which is in and of itself required a whole additional layer of knowledge and expertise.With regard to your question about private lenders, it’s important to draw a distinction in terminology between “private” and “hard money.”

Its under the Events of Default Clause that the holder of the note would rely on a remedy.

It's an extra layer of annual paperwork that gets you absolutely nothing in return.

I would note that some lenders don't like "layered" ownership structures.

You'll see a hike in rate going from FHA to conventional in general (especially if your plan is to pull some of that equity), but you're also going from owner occupied to investment (if you plan on moving) which is another layer of pricing adjustments.

I enjoy finding creative ways to monetize normally overlooked spaces at my rental properties.  I've been successful at renting out detached garages on a few of my properties.  I'm soon closing on a multi-family proper...

They have other nice benefits also such as not charging for appraisals if the deal doesn’t close, a great reputation amongst local listing agents with meeting deadlines/ great customer service/ getting the job done with no b.s. and they can often close in under 14 days. 

As I understood that allowed me to have an extra layer of liability protection. 

We don't have them recorded, just signed as another layer of protection.