HELOC to purchase property - no financing

[Brian Ellis]

Have a condo deal closing in a couple weeks.

165k purchase price
25% down

$350 HOA

$27 insurance 

Rent after repairs $1750

Cash flow: $490

COC: 13


Now my question is, would you consider using an equity line of 110k, combined with cash to purchase? There is a situation where financing might fall through. The equity line payment would be pretty similar to the conventional loan, and I’m looking at a similar cashflow, but obviously my COC return is less, probably around 8-9%, AND the biggest downside is all my capital is being utilized so I can’t scale for a while.