It could be a good option if you're looking for long-term value growth.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I am struggling to find the right option for a HELOC on my second home in Northern Michigan.

If you end up getting a Property Management company, they will typically have a lease (would still be a good idea to take their lease to your attorney for review)As for property management, hiring a company can make things a lot easier, especially if you’re managing from out of state.

Some policies provide even more coverage than a typical 1-month security deposit amount.3.

Need to do more research on possible retirement account options, but for now I'm not pursuing this.

if there is deferred maintenance it will eat up all cash flow for years and years.2. if "offers are due Sunday" it sounds like this is a multiple offer situation, in which it seems extremely unlikely they'd accept an offer below asking... in multiple offer situations the price typically goes above asking. 

What are the other options for the property that can generate the most income?

@Kanika Jain, you will have plenty of options in Kissimmee and Davenport, the Disney markets.

This is a good option.