If  you are in the 20% range, you are better off going to the casino and putting all of your money on black and seeing what happnes.Since you are out of the area properly calculating cash on cash returns can be difficult because you have variable expenses to calculate. 

To summarize, what I have seen is a possibly poorly conceived investment possibly sold to people who are not sophisticated.  

Sophisticated Lenders can and do structure these with many safegaurds but thats not what you are seeing in the Gator world and the gap funding and loans being presented to new lenders..

Reg D 506(b) allows for unlimited fundraising and up to 35 sophisticated investors.  506(c) requires accredited investors.  

Another option will be to use the HELOC to buy a property that needs work, fix it up and then refinance and do the BRRRR strategy, but this is a bit more sophisticate and you want to make sure you have the knowledge and the risk tolerance to do it. good luck!

Tropicana Imploded Early This Morning: The historic Tropicana hotel and casino was demolished in a dramatic implosion, marking the end of an era.

I don't need to get into why, it should be obvious.No sophisticated investor uses them.

. - there are numerous ways to achieve sweat equity from boring but true rehabs, to development, to various localized sophisticated options

I am willing to go so far as to say they intentionally are seeking investment sources who don't have the means or sophistication to conduct appropriate diligence.Sadly social media has made it far easier for these bad actor capital raisers to get in front of their target audience with ease.

Even looking back at the C/D section 8 type properties I owned at the start of my investment journey 10 years ago, those tenants weren't sophisticated enough to find me anyway even if I gave them a reason to (which I didn't).