If you’re looking for a long-term fix, go for a more robust approach.

@Hank Bank BRRRR is probably want you want to do.Buy, Renovate, Rent, Refi, Repeat.Before you go all in and either find out you don't like being a landlord or you make costly mistakes, start with just the next one.You'll have some challenges with tapping the equity in the townhouse:1) What loan amount can you qualify with your credit & income?

Start to evaluate deals based on the income approach and you'll do much better long term investing. 

I was approached by Avantstay and wondered if anyone in this forum has had experience with them from owner point of view. 

Are there better markets or hybrid approaches I should consider (e.g., smaller multifamily properties that accept Section 8 tenants)?

I'm curious to connect with any other STR/ MTR owners in that area to get more info on resources that are in the area and what challenges/ successes you have had there. 

Looking for feedback on an approach to help grow my hospitality portfolio.   

They find properties and approach Sellers and secure a price, then they seek out an end Buyer (you) and sell it to you at a higher price. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

I plan to use a HELOC but would be interested in the thoughts of others in BPs on this approach or recommendations if there are other ways to financing that I should consider.