So, apparently you want to cover yourself for two degrees? 

On the HELOC side of things, i don't like the idea of taking an interest only 2nd position loan on your primary to cover a down payment on a stabilized rental.

The home is in good shape and would not necessarily be a good BRRRR because rental comps wouldn't cover the refinanced PITI (plus expenses). 

I highly recommend managing them yourself, at least the bill paying, tenant screening, rent collecting aspects, and finding reliable plumbers and heating/cooling people- these are the services you'll use the most. 

If she does than the purchase has to be enough that it will cover the reinvestment target for the 1031.The client has to take title to at least as much as they sell. 

Using $230k at 75% gives me a loan amount of $161k which should cover purchase and rehab costs for interior remodel.

Can he comfortably cover the payment is he gets a POS tenant? 

If the in-place rents generate don't generate enough cashflow to cover your debt service, you'll want to plan to bring additional equity to the deal to cover the shortfalls.

The cash you get form either of those options helps to cover the down payment on future purchases.After you have purchased a few homes and have a good chunk of change you can get into 5+ units and start using DSCR to buy apartment style homes where you can focus on affordable living options and things like section 8.

Yeah, if it is an investment property personal home insurance will not cover it.