Airbnb Funds Allocation Help

[Ben Unger]

Hello BP,

I am having trouble setting up my buyer criteria. I have a target market of Galveston, Tx or Surfside, Tx and want to purchase my 1st Airbnb.

My available funds are about $50k savings and $100k HELOC from personal residence. I do have other rainy funds that would get me through a year of expenses. (Layoff, or other unforseen events) and my credit is great.

What realistic purchase price point I should be evaluating? And what should be used from the HELOC vs savings. ( Furnishings, down payment %, rehab, ect.)

I hesitate with the HELOC as home prices are falling and rates are going up. Not sure what adjustable interest rate I should consider for analysis? and best moderate risk way of paying it back.

Any help from examples of funding Airbnbs with combination of Savings and HELOC would be appreciated. Assumptions, risks, payback strategy.