Newbie Investor with 40k HELOC.Advise on How to Spend Wisely

[Conrad Feh]

I am a newbie Real Estate Investor and after reading Brandon Turners' Book on How to Do Real Estate With Low or No Money Down, i learned about the HELOC strategy. So i applied and was qualified and I now have 40k in my hands. As a newby, I would like to get advise from all you veterans on how to wisely spend this funds.

I found a potential deal and unsure if I should put in all my money, HELOC, into the deal. It is a Duplex, 2/1 in a great neighborhood in Gwinnett County, GA. Both sides paying $825, roughly 1650/month. Property management takes away 10% per unit, roughly $82.50/month x 2 = 165. I got a contract on the property for $145k with $2k earnest money down.

My credit union mentioned they can give me a loan on a 30yr fixed at 75% LTV and a note rate of 4.875%. The proposed monthly mortgage payment will be roughly $820, which includes both insurance and taxes. So i will be cash flowing at least close to $665, once you subtract the mortgage of $820 and monthly property management fee of $165. Great buy and hold for first investment.

But after looking at my income, and running all the numbers, the credit union noted that I would have to come up almost all the $40k at closing. 

My question is, I have already send $2k earnest money to a law firm holding the funds in Escrow. 

As a newbie investor with 40k and no deals under my belt and just starting out, is this a good strategy to go with? Go ahead and do the deal with all the 40k? Or use the money elsewhere? Please advise. I need to make a decision soon. Thanks a bunch in advance.