looking in Kauai, Maui etc areas with str restrictions,  leaning towards ltr. but with high rent and low income for local residents,  is it easy to rent ltr/find good tanents and have cash flow or atleast break even ? 

.- Our combined after-tax income is $170k annually.- We have no outstanding mortgage debt.Recently, we discussed financing options with a banker at PNC and learned that we might qualify for a HELOC up to $480k, albeit with a relatively high minimum interest rate of 9.31%.

Assess key factors like population growth, low vacancy rates, rental income, job market diversity, and crime rates for a thorough market analysis.

I would first try to increase your income/liquidity or bring on other investors who can provide the capital. 

They will look at your debt-to-income, credit, income history, etc. 

@Arshiya TaamiHow long you been collecting a w2 and what are your incomes vs expenses?

You mentioned generating income, but I’m not sure that you’re better off investing in stocks, bonds and REITs.

I have owned income property in Texas and Arizona. 

Some helpful info on knowing how DSCR rates and guidelines broadly work: DSCR loans won't use your income to underwrite the loan. 

Other option is find a partner who will contribute the cash and you can use dual incomes to qualify for the mortgage.