Taking out a HELOC against your primary residence only makes sense if your investment will yield enough profit to cover the carrying costs of the HELOC, Closing Costs and incidentals.

The number one topic I always have with investors who do not know our market is that the bottom of the barrel is really fool's gold.

There are many other potential investment locations that do not carry the high risk of Detroit.There is a strong belief that buying a property that already has a tenant is a great way to go.

If you are not installing a second service / meter, you will be carrying that cost as well. 

This is different than the carried interest.      

Why not get the work done so you can enjoy some of the renovation OR wait til the last 3-4 months and then go ALL IN on the renovation so you don't have the carry costs of the reno for the first 15 months or so...this assumes the house is liveable and you are okay with hit how it is.

Thanks Mohammed, no focusing on the cash flow is good if you have money to carry you, but I dont have money to carry me. 

If you know the person really well, know that they know real estate, that is worth more than gold.

**Lower Risk**: The buy and hold approach carries lower risk compared to the BRRRR strategy, 5.

If you are okay with someone painting over your original woodwork (even though the lease says they can't) or ruining your marble countertops when they dye their hair (true stories) then you may be emotionally hardened enough to rent your original home that you have lovingly designed.Consider, also that at times you will have to carry two large mortgage payments and decide if you are willing to do that.