This will be my first property and I want to fund the deal through an FHA loan where I know I have to owner occupy which is my intentions.

It was proposed that he obtain a bond in lieu of the note so that we could move ahead with our current closing date.

My concern is by using the HELOC as mentioned then applying for add'l conventional loans as we grow our portfolio how will this impact our ability to continue to get funding from the banks?

Plus they want your proof of funds.

I've found ways to get 70% of Purchase price funded by hard money. 

(my finance IQ is subpar at best) My parents are private lenders, and have offered funds to us at 6%.  

It’s a bad day when the hedge fund reps show up as their initial bid will be 95% of market value.

You can make it clear to the tenants that they will be held responsible for excess damage or waste caused by the animal,  just as if they themselves did it.While you need to be careful to avoid a claim of retailation,   maybe schedule the next couple rent increases to be a couple percent more than you otherwise would,  and bank those funds towards expected greater turnover costs.  

Do you already have your funding situated to have a GC come on property visits with you? 

So for the short term, you need to keep enough funds to protect for any negative cash flow you may encounter up front.