I would also look into possible ADU potential on the property or garage to supplement and get positive cash flow.

Here’s a link to WFCMT 2019-C53 prospectus supplement: https://sec.report/Document/0001539497-19-001921/n1827_424b2-x16.htmThis particular collateral pool has a mix of Office (~26%), retail (~20%), Self-Storage (~11.6%), hotel (~10.9%), land (~8.%), manufactured housing (~7.4%), mixed-use (6.8%), industry (5%), and MF (~4%).

It is essentially sharing a property with tenants whether that is a room, basement, adu, etc in which their rent supplements the mortgage.

It is essentially sharing a property with tenants whether that is a room, basement, adu, etc in which their rent supplements the mortgage.

The portion of the land and house that you lived in could be tax free using the primary residence exemption.The limitation listed above that you cannot have more than 14 days of personal use or 10% of the number of days actually rented for the property to qualify for a 1031 exchange is part of a safe harbor from the IRS that originally was aimed at taking depreciation and expenses against income. 

-Another thought: Maybe they can house hack house #2, maybe get one with a guest house or additional unit they can rent/airbnb to supplement income/offset mortgage.

Maybe I can use the HELOC for that and aim to use an FHA and only put around $20k down.

Michigan will be the bigger learning curve for me but it is closer to where I live so I am aiming to do more investing in the Michigan area.

1 property won't get you very far, the only way to potentially make some respectable supplemental income from just 1 property is the STR route and that basically has to be a home run. 

If you want the best programs, then $75k is probably what you should be aiming for, in my opinion.