Hi Rob,If you believe the HELOC will be sufficient for the purchase & rehab, it could make sense to use the HELOC given the interest rate is lower than a hard money. 

Your common area is walled off and has a door (a pocket door in your case).  

To be considered a trade or business for the qualified business income deduction, all of these must be true:Your participation in the rental activity must be regular, continuous, and substantial.You conduct the rental activity with the expectation that you'll make a profit.The rental activity is conducted in the United States or Puerto Rico.Rental activities that are considered trades or businesses include:A real estate professional who materially participates in the activityA rental to a commonly owned trade or businessRental activities that aren't considered trades or businesses include:Rentals for less than fair market value (FMV)A lease agreement in which the tenant pays for real estate taxes, insurance, and maintenanceA vacation home that's rented out and also used as a personal home

Quote from @Ben Lasri: yeah for sure but like what areas all over where the numbers make sense

This makes a lot of sense to me, you wouldn't want them knocking on your door 24/7 for simple issues.

We own over 600 apartment units in Cleveland Heights, Lakewood, and Mentor OH, of which quite a few require rehab to bring to market rent.We struggle to find enough contractors for this work.I know that this is a common problem, but if anyone has any recommendations for contractors in that area, that would be awesome!

My guess is there isn't going to be a clear answer based purely on math and analytics, so what makes the most sense for your current life and your future goals? 

Just because the numbers can make sense on a deal or an investment doesn't necessarily mean that should be the only criteria you use to make a decision, especially if you're going to be living in the home. 

If you find the right deal and it makes sense, you are using OPM (other people's money) so it can be a great idea!

No sense whatsoever from a numbers standpoint.