HELOC to Finance a Rental Property ?

[Karim Z.]

I have the option of using an already approved HELOC to finance a rental property, is it a good idea ?

If yes, given that HELOC is considered like a "credit Card" and that you only pay interest on the amount used- how to calculate monthly payment in my cap rate/cash flow calculations for both interest and principal payments ? I mean do I consider it as a regular loan/mortgage and set a certain amortization period to be able to calculate monthly HELOC interest payment, and allocate as % to the "principal payment"? Thanks!