You can also request a security deposit for extra peace of mind. 

From a credit perspective, house hacking also helps you build strong cash flow, which can make it easier to secure financing for future deals.Additionally, if you're targeting high-appreciation markets, you could also look into cash-out refinancing down the line to pull equity and fund additional investments.

my RE income from my rentals is semi-passive of course... so less active than W2 but more active than dividends or social security.

Quote from @Gary Bonds: Any best practices when attempting to secure business funding from a bank, in the form of a loan or credit?

I did not read the rules around security deposits. you may be allowed to use those funds and still file a small claims action for any remainder, but I can't imagine that it would be worth it if you have at least one month's rent in security deposit. 

Here is my current situation - I can probably secure a personal loan for about 200k at around a 3-4% interest rate with a 5-year tenor.

The premise proclaimed at the start of this thread is simply not supported by mathematics with the exception of the specific case where the interest rate on the HELoC/secure LoC is sufficiently lower than the rate being paid on the mortgage.

I dont allow tenants to move in without first month rent and security deposit paid by cashier check .

Also the Voucher doesn't cover the security deposit which in most cases, I have to put my S8 tenants on a security deposit payment plan for those to get them qualified to move-in on my applications.

They have unsecured creditors of over 5 million dollars and secured creditors as either loans on properties and/or owners of properties.