We are pretty new (6 months in) but this has been a great way to build up our reviews and credibility. 

I am 95% sure that the daughter does not have a job but I'm assuming may have some sort of government assistance income.

But if you can provide a joint partnership agreement with a credible individual, you may find someone willing to work with you.

This is not a section 8 or a government program. https://my.neighbor.org/They promise a double deposit and will cover 100% of the rent for the first three months and their coverage scales down. 

If you purchase as investment and you need to cash out in order to get the funds for down payment, I suggest a regular refi and not a heloc, rate will be similar with the purchase and definitely better terms than a heloc, also Heloc are riskier, they are not governed by the Fannie and Freddie, you are not as protected, also as this year, you can no longer deduct heloc interest on your taxes. 

I owned and lived in condos and invested in and rented out condos, all of which is governed by HOA and it's bylaws.

Hey guys, how does the local government view short term vacation rentals?

I have always assumed that the state health dept operating license that says how many lots you can have is the governing document.

It’s the governments way of protecting homeowners.  

Remember--you must know and follow all the rules the government sets, or you could blow up the entire strategy.