Use the HELOC on cash-generating opportunities like flips, then use the cash generated to buy long-term buy and hold investments. 

Couple this with the "Cash Distributions from Capital Transactions" clause and you begin to see the real problem.

If the property cash flow starts in 2024, personal usage is not that impactful.Talk to your CPA if renovation counts as QIP for bonus depreciation.

There are ways to invest in real estate without using your own cash upfront.

However, it’s important to ensure the seller is comfortable with the terms and that the property cash flow can support the agreed-upon monthly payments.Seller financing can be a good strategy to grow your portfolio with less initial capital, especially if you're able to increase the property's value through improvements (forcing appreciation).

So about a 35% cash on cash return for my buddy each year on his $100,000.

Otherwise, it’s treated as a partnership requiring Form 1065.Get an EIN (Employer Identification Number) from the IRS (free) for tax and banking purposes.Separate personal and business finances by opening an LLC bank account and keeping rental income/expenses distinct.Consider an operating agreement, even if not required by state law, to define ownership and responsibilities.Liability protection: An LLC helps shield personal assets, but you may still need landlord insurance and an umbrella policy to cover lawsuits and unexpected claims.Tax strategy: Rental income typically passes through to your personal return (Schedule E).

Are you considering doing all cash, or do you want to finance? 

The school is very good, but middle is not so much.I have some cash to invest, but can't decide what route to take.

I am in the Single Family Investment space so if you ever wanted to chat about that feel free to message me!