Of course, a realtor and a mortgage person are going to tell you to rent one and buy a new one, but why would you move out of your home that you've lived in, just to owner-occupy another single-family that you will probably not like as much, just to get minimal cash flow out of the house you put the work into.

Sure you pay HoA fees, but as long as you can cash flow, the actual damages are minimized since you only have to care for the interior.

Also know that your LL has to mitigate your damages which means they need to diligently try to release your place as to minimize your financial loss.   

While you want to minimize the financing costs, it also has to be worthwhile for your HML, so you might consider using $100k in hard money, then using your HELOC and/or cash (in whichever order you're more comfortable with) for the rest, keeping enough in reserve for the repairs and renovations. 

I am in the process of delayed financing and the house got appraised for 250K.

Why don’t you just do seller financing on it with a $x down payment but do delayed payments for 6-12 months while construction is happening so you’re not making payments while you’re in the middle of rehab and vacancy. 

By following the method illustrated below, you minimize vacancy cost and maintenance cost while maximizing rent.

@John Do Most of my investors rely on me to minimize the competition.

If you want to be active and want to be involved with some of the day to day decisions, as long as you have a great team in place the hours you will work will be minimal. 

I purchased this house for cash, did minimal work, and then listed it on the MLS and sold it to a builder.