How to calculate cash on cash return and cash flow using HELOC

[Jeff Long]

I'm new and want to make sure I'm calculating this correctly. I've searched the forums, used the BRRRR calculator, watched BP Youtube videos but haven't found the answer.

- How does my HELOC factor into my calculations below?

- Do you use a HELOC to buy for cash and then repay the HELOC back quickly or as slowly as possible?

- What am I missing in this scenario and is this a good investment?

I'm using a HELOC to buy this outright. My interest rate is 5.5%

Purchase price: $17,800 (plus $2500 realtor and inspections) - 3 bed 2 bath, 2 story house, 2 car garage. There aren't many 2 car garages in the area that are this usable (some are mostly unusable).

Initial Repairs: $7-10k (mainly new paint, carpet, lower cabinets in the kitchen, glass block in basement and upstairs bathroom, updating bathroom)

Expected Rent: $700/mo (probably doing Section 8)

Expenses = $310/mo (based on items below).

10% Property Management: $70/mo

10% repairs/maintenance: $70/mo

RE Taxes: $35/mo

Insurance: $57/mo

10% Cap X: $70/mo

I've used different real estate calculators but since they ask for the information differently I seem to be getting different numbers for my cash on cash returns and cash flow. Any help and guidance would be great!