Nashville is a fantastic market with strong rental demand and long-term growth potential.

In terms of appreciation as well.

Short Sales, Bank Owned, $/sqft, school district, days on market, etc.  

I’m also based here and have experience with short-term rentals, property management, and work with investors like yourself.

Look for any clauses about rental caps, short-term rentals, or owner-occupancy requirements.

Quote from @Samuel Coronado: Huntsville long term will get a better % ROI than Atlanta.

I would find a loan officer that does both conventional and FHA renovation loans to compare which has better rates and terms for your situation.

I would assume a greater emphasis on quality of materials and workmanship (and consequently higher rehab cost) for a rental where the investor will have to deal with the longer term implications of any corners that were cut.

Keep it short and sweet: thank you for your application, the unit has been leased to an earlier applicant. 

I would think with the HELOC, I could run with that until I can do a refi and with the interest rates starting to come down, there should be some gains to be made and I can repay the HELOC in short term.