The answers to those will depend on the HELOC terms. 

Since you'll be looking for a house to live in (primary residence) you'll get better loan terms/interest rates than if you were buying it as an investment property.   

I would love to connect with people in Northern New Jersey that are utilizing the Medium Term Rental strategy locally; specifically furnished rooms that are being rented. 

As a model, Techvestor syndicates (uses investor funds) to acquire, fit-out and operate short-term rental properties for profit in select markets across the US. 

All other factors (applicable documentation, terms/interest rates, title, requirements) seem to usually be about the same.

Most often the terms specify that distributions are first paid to satisfy the preferred return and second they are paid to return capital, so the capital account would look like this:$100,000 starting balance$8,000 preferred return accrual($8,000) preferred return distribution$100,000 ending balanceIn year two, there is another $8,000 due, etc.But partnership agreements can be written however the parties agree, so the rules could be different and that would result in entirely different calculations and results.

Let the departing tenant know that she is on the hook for the terms of the lease until a new renter takes over.

I am pre-approved for the loan, and the lender only lends to LLCs.

This new form allows us to order a 1007 rent schedule with SHORT TERM RENTAL COMPS.

Agree with everyone else - Install a nice pre-fab vanity, tasteful mirror, add a nice light fixture, and slap a coat of paint on the wall.