How to invest my HELOC properly

[Timothy McLean]

as you know there are many ways to finance your first property. Whether you are looking to flip or buy and hold the methods are abundant. My wife and I own our home with approximately 4.5 years remaining on our mortgage. We recently obtained a home equity line in the amount of 140K. Since last spring I have been diligent about my homework, have zeroed in on an area I would like to invest and feel as if we are ready to make some offers. I have a fantastic realtor and a contractor who I trust. The question becomes how to be very strategic about putting the HELOC to work without over-extending ourselves or depleting our cash position. Cash saved besides emergency funds is approximately 35k and we are looking in an area where 3/2 SFh are priced in the 130k to 175k range and more than likely will see an upside in appreciation. BRRRR'ing (haha) a property is tight in this area and will prove to be difficult but not impossible. There are plenty of properties that are nearly turn-key but not 100%. On another note, the HELOC is a floating 2.25% with the potential to increase. Considering the times I feel confident it will not skyrocket any time soon.

So how would you put a HELOC to work?