Is this a bad idea?...

[Jeremy K.]

I'm thinking about taking out a $25,000 P2P loan (Lending Club, Upststart, Prosper, etc) at 6.9% interest rate for 36 months, and then investing in a note fund with a pref return of 10% for 36 months.  I've put it in the spreadsheet and it pencils out.  Only downside I see is that the monthly payment of the loan (which is fully am) is higher than the monthly return from the note fund (which is interest only),  I'd be out of pocket around $500 a month, but after paying myself back, I'd have 4-5k left over as profit at the end of the term.  I was looking to save around $1,000 a month anyway, so I would look at it as savings that gets a return.  

Of course all of this is predicated on the note fund performing, but let's just assume it does for the sake of this analysis.  What are your thoughts on this idea?  Is the cash-on-cash return too low over the 36 month period?