The down payment might be a little higher, but it will be a much longer-term loan that you won't have to worry about coming up with big payment in month 24 and it'll be amortized over a much longer time period (probably 25-30 years), so the monthly payment could actually be lower. 

Can you make a higher return than what the interest rate on the HELOC?

Quote from @Caleb Brown: Is the property worth the higher price to pay off the loans?

If it's on the higher side you may want to consider it for mid-term or long term rental, but if most stays are below 30 it can be viable for short-term! 

If you are in a state where eviction cost is high and it is tenant friendly you may need a higher credit score to offset default risk and eviction cost.If you are in a landlord friendly state where it is easier to get non paying tenants out you may be able to handle more none payment risk.  

You will want to have an area with a higher % of renters. 

🌟 December 2024 Top ROI ZIP, 28262 🌟For the first time ever, only one zip code produced an ROI of 7% or higher!!

Investment also spiked in Class A Short-Term Rentals (STR) and investors started paying higher and higher prices based upon anticipated STR rental rates, that exceeded sustainability based upon Long-Term Rental rates (LTR).

Our team also focuses heavy on STR management and assisting in renovation to get higher dollars per night.Let me know if you free for a call sometime.

No one has really balked at that but we do have higher end guests.