I always suggest starting with multifamily, due to it being easy to later purchase a SFR using FHA or low down payment conventional options. 

It was getting cold he said ok I also explained to him the outside ac  fan had a Edison summer saver plans which turns the fan off at certain times he under stood but wanted the box off so I called Edison And had the box taken off problem solved .a week after  i got a call from tenents saying they got a message via text from the water company stating continuing runner water possible leak.so I went noticed they were running a swamp cooler 24/7 they said the ac bill was high so weve been using a swamp cooler,and they filled up a above ground pool .i asked them did they call the water company to let them know of the pool fill up they said they didn’t.i called the water company to talk to them about the running water text my tenants got and explained to them  they run a swamp cooler that runs on the water faucet and they fillled a pool ,and all the household water use from  big family.the water company said that’s why there getting that text.they also said that for me to talk about there account water usage they have to call and give permission so I asked the tenants they refused.its gets better,I get another call from the tenants now sayin one of the toilets are making a noise.so thinking the worst I go just a stuck handle.so while I was here I th ought I might as well change out  all fill valves and floaters for all three bathrOoms so I did.was there a few hours making sure they were running properly and leaks.i remind you that was on a  Thursday.on Monday my tenants send me a bill via picture text from  a plumber saying all toilets leaking cleaned out all fill valves because they were clog and put in new flappers leak fixed.i asked the tenants why’ didn’t he cal l me he  had no excuse,so  I called the plumber he said they clogged  and he cha changed the flappers.so i come  Back how’s that if I just put all of that new four days Pryor on Thursday he couldn’t answer me free.now im getting I’m not  paying  my water bill because of the leak.now they sent me there water bill .with previous charges from there old residents claiming it as part of  a leak.do they think I’m stupid,there clearly trying to scam me.they won’t  Give me permission to talk to the water company and  the plumber is his good friend.

Only charge reasonable fair market value rents (maybe higher end of the rent range).

After likely you will go with conventional financing, or move to working with a HML, partner- or creative financing  

Do a HELOC or put a conventional mortgage on the property.  

Conventional loans stop at 10 properties.  

If kids are not in the picture, I would house hack a 3 or a 4 unit with a 5% down conventional loan first.

I need to know how to fully prepare to apply for a home loan and get qualified (most likely for FHA since I don't think we can save 30% down payment for a conventional loan).

I have everything set up with my HELOC, but my question is....would it be better to put down 20% on my first property and then get a conventional loan for the remaining balance OR if I have enough money in my HELOC, should I buy the TK property outright?  

Its a 2 bed 2 bath single family unit which worked for me at the time because I had a roommate that I charged an extra $500 to and split utilities.