If it does vest, then the 2nd isn't currently $8k and the paperwork could further help your case.Other option is to completely ignore the equity in your residence and look for creative financing on the property you want to purchase. 

Here is some info: SF STR FAQAssuming the info is up-to-date, it must be your permanent residence (you must live at the property for a minimum 275 days a year), you can rent unhosted a max of 90 nights a year, you need a business license, and you need to pay the city $925 for a STR certificate.

I have a HELOC on my Texas primary residence and am considering a house hack for my next purchase.

One of the great things about having multiple residents per property per year is that you can iterate faster than with an LTR.

Quote from @Richa Wardhan: Regular lender financing, we have paid off 70% of our mortgage on the primary residence so we were loaned money without any issue. 

.- Depending on your budget, do you want a small condo or larger residence?  

Look at their rental history, the conditions of their previous residence, and ensure they have a good track record with past landlords.

Therefore that's why you void the contract and re-write the contract with the additional tenant and his terms and conditions as well as Qualifications and requirements for them to reside there.

So you are suggesting like me tryin to by a single family residence or a apartment unit and live in one of the units and rent the rest out as a house hacking strategy?  

Look, I have no idea who Eric is, what type of person he is but I will say after a quick search I saw that he did in fact sell his company for MAJOR $$$ and that he is active in Section 8, no idea if his course is good or garbage but still felt the urge to respond because I am so tired of hearing SCAMMER, find it online to EVERY SINGLE post asking about any course. anyone who actually sells their business and nets 110 mil is NOT going to dive into Section 8 or any real estate for that matter other than fine personal residences etc.. they retire and spend it.. so I dont think so.Plus section 8 is simply not complicated its run by the Sec 8 folks in each city.. nothing magical about that.. its a tough way to go being a section 8 landlord lots of drama.