Apartment complex financing strategy questions

[Joshua Boyce]

I need help deciding how to handle financing as a partner on a JV deal for a 70 unit apartment. 65/35 split

I have a HELOC I'm considering using to buy in as a partner on this deal. With the numbers below, does it make sense to use the HELOC? I appreciate any input as to whether or not to pursue this deal with a HELOC. My main goal is to build capital with a good balance of cashflow. Thank you!

Here are the details:

Buy in cost is 100k which would max out my HELOC @ 4.4% variable, with option to fix the rate

Apartment Details:

Plan to hold for 10 years

First 4 years Cash on Cash (pre-refinance): 8%

Average Cash on Cash for 10 years: 12%

Purchase Cap Rate: 8%

Total Return on Original Investment (Cashflow + Sale): 134.46%

Annual Cashflow Average: $7,500

Refi cash returned after 4 years: 62K

10 year IRR: 14.6%

Equity Multiple: 2.34