You will pay a higher interest rate and need a bigger downpayment.What you need is good STR insurance with plenty of coverage to protect you.An LLC offers some protection with contract issues (like kicking someone out during their stay) vs negligence, which is what you need to watch for.

The issue was eventually fixed but many landlords lost thousands of dollars.

Could you share with me what bank you found that issues HELOCs on Rental Properties?

These tend to be mostly cosmetic interior rehabs (not always but usually) and you can usually avoid the big hidden issues that single family homes can have (structural, environmental, plumbing etc).

I have 8 rental properties financed through conventional loans and I’m having issues getting more. 

I told them that I wanted to see repair bills etc. and proof that the issue is actually solved.

And what do I do if he doesn’t answer or avoids giving me this info (I have read other people saying this was an issue for them)?

One thing I would consider doing is be sure and google "Dane County rental laws". 

Kevin, thanks for weighing in on my issue!  

Hello Jean:Make sure to review the rent control laws in the city.