I'm looking to finance the project long term in a way that is helps me create positive cashflow.

The HOA is certainly not trying to push out short-term rentals.Thanks Tyler.  

TurnKey, Buy-and-holds, flips, or maybe long-term rentals?

Quote from @Nithin Kumar: New to Phoenix and hearing a lot of places for rental investments but trying to figure out from the pro's around to find what are the areas that can break-even on a monthly basis and the areas that can show appreciation in the nearer term. planning to put down payment of 30% (~100k) Hi Nithin, I live in North Phoenix myself and would recommend anything around the Paradise Valley Mall area.

I have a house that’s a long term rental upstairs and a medium term downstairs.

What about rate and term refinancing?

the terms of your agreement with the agent will lay that out

If it's worth that much, taking a HELOC on it should not be an issue at all long-term or short-term as long as the bank will do it.

Looking for guidance on the best way to proceed going forward in terms of asset protection and how to structure all of this real estate… 

Then once it's acquired and/or fixed up you could shop around for long term financing if planning on holding the property rather than flipping it.