This unit is still ramping up toward the occupancy rate we had with our previous PM prior to have been taken down for a refresh.  

Here are the details:Bought in 2015Owes - $45kNeeds additional $20-25k as a down payment on the new house for equity.Rate - 6.125% (Adjustable Rate Mortgage) Max is 8%PITI - roughly $700/monthHouse is in great condition so no rehabAsking $175,000, could sell on market for $220-230kRents - $1400-1600How would one structure this deal?

Looking forward to rates settling down this year! 

also, I am exploring different funding options including HELOC, HEL, etc.Given current rates are quite high and sticky, how do you recommend to utilize these funding options?

BUT this also leads to very high default rates.

This will be the 3rd rental property in my portfolio. with the interest rates being so high I feel Iike a higher down payment could be a good idea over the long run, but I’d like to hear some ides on this, thanks in advance !

You'll struggle with the debt service at that rate after expenses on a property that size. 

--HELOC is against PRIMARY---Rate is 6.95 first 12 months then prime +2 for a total of 10y, interest only, then amortized--Total HELOC would be purchase price + Renovations (approx 120-130 total but who knows)Projected cash flow is estimated without knowing specific extra costs.  

If everything else is the same and the only new change is buying a rental, I have a feeling that the return is done incorrectly.I am also surprised that a rental purchased recently with high purchase prices and high interest rates would generate positive taxable rental income.

These loans typically have competitive interest rates and terms, similar to a HELOC.