Then you could buy now before competition becomes crazy again and refinance when rates come down.

If you have not contributed post-tax dollars into a traditional IRA, the total amount converted is taxed at your normal income tax rate and the Pro-Rata rule does not apply, but in this case you mentioned you have an IRA so I'm sure it does. 

Maybe I personally need a certain school zone.

Between rates being higher and terms being shorter Helocs can also have issues when it comes to DTI and not having reserves. 

Rent out your units at, or slightly below, the market rate and gradually increase rents YOY (2-2.5%).This strategy will allow you to get your foot in the door with a low down payment AND less competition.

In this high-interest rate/high-price market, house-hacking is more about offsetting as much cost as you can.

I am currently renting at 40% below market rate rent and will be putting 5% down.

You can get higher but the rates will be higher as well and it will be a lender that doesn't sell the loan to Fannie. 

The fix and flip loan will either more expensive, a higher rate, or generally a bridge loan without rehab (it may also require more down) in most cases. 

How has the occupancy rate been for you and Avg nightly rates?