Should I use HELOC to invest in STR?

[Luke Siecinski]

Hello,

I'm trying to invest in some STRs in the Gulf Shores market. Pretty much my only option (unless I want to seek outside investors) to be able to afford a down payment is to use the equity in my home. I've been working with a couple lenders and I could get about a $40k line of credit which would be enough to cover the initial down payment/closing costs investment of getting a property. BUT I would pretty much have to use the entire line, and if not all of it definitely most of it. 

All that to say, is it unwise to use the entire line of credit to invest in the STR? Can anyone help me with calculating what type of monthly payments I would potentially be up against? Not sure how to determine that. I was given an interest rate of about 3.5% but obviously that's variable, but just a general idea is what I'm looking for. I've done market research and the properties I'm looking at could generate about $50K annually. I'm willing to make the monthly payments on the HELOC if they're not crazy. Just want some perspective because without being able to immediately refinance the property to pay off the HELOC, I'm not sure if it's a wise move. Anyone else use a HELOC for STRs?