There are multiple options for the property, the hardest part may be deciding which one to pursue.

If you are looking to house hack and go the traditional route, it would most likely give you the lowest down payment option.

Hey Adrian - There aren't many options out there for investment HELOCs, and the ones that are available will be full doc...meaning income, employment and DTI are used to qualify you.

Higher contribution limits, participant loan option, no UBIT on financed real estate, to name a few. 

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

@Orane JacobsHouse hacking in San Diego is a smart option even with the expensive real estate market.

Many investors get scammed by agents & turnkey providers selling them Class C properties as Class B.The Metro Detroit area offers a wide range of investing options - as long as you deal with the right people:)PM us for more info.

What would you do and what is the best option here? 

Before diving too deep into property searches, it's wise to first determine your financing options.

Most lenders will offer two options:1: 20% down and 20 yr amortization and 10 yr term.2. 25% down and 25 yr amortization and 10 year term.Rates will vary by region, lender, and relationship with your lender.