HELOC + Capital vs Capital w/ Conventional Loan

[Zachery Hitchcox]

Hello BP community!

I'm currently investing out of state to Florida from Nevada. I have over 500k in equity in my 2 other rental homes that I bought many years ago (low rates and cash flowing well), and less than half that in capital. W2 job pays well and I'm on the hunt for long-term buy-and-hold cash-flowing properties in Florida where I'm working with another BP agent and pre-approved for at least 300k. It is hard to find cash-flowing properties, but I'm trusting the data that opportunities are to be found. I'm concerned about draining my capital and I'm looking toward a HELOC to use for light renovation or downpayment assistance as I want to get a property this year and next year.

Question: Does it make sense to use capital to 20% of a conventional loan and HELOC the upgrades/reno (or even partially for the 20% down)? I'd rather use bank debt instead of tapping capital where it is efficient.

Thoughts here?