A FHA 203k Loan is where the purchase price and rehab costs are rolled into a single loan.The downside of using FHA or a FHA 203k is you will need to live there, for a minimum of one year (to satisfy FHA Requirements); AND because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC.

I don't know if they still do it but if memory serves a few years ago TD Bank would do a HELOC on a rental in second position but only if it was titled in someone's personal name. 

The strategy is built on your own personal cash flow commitment.

Others may have personal experience to share.

Personally, I would hold onto the home a bit longer.

I have a feeling this is designed to maximize retention of now dislocated persons. 

The property is insured on your behalf, personally. 

With a loan, a person takes on a Debt Obligation. 

You can’t use the property personally for more than 14 days or 10% of days rented, whichever is more. 

I want to exit as I don't get any personal use from the STR being 20 mins from home and would rather apply the capital to another opportunity in multifamily (LTR) or another STR in Hawaii where my brother is a broker and now manages STRs.