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

Purchase price: $45,000 Cash invested: $92,049 Sale price: $154,900 Contributors: Peter Vekselman Partner Driven and partners BJ & Traci Medlen purchased a property on S.

And don't let cash flow be the end all be all, if you have people living with you, your expenses and mortgage is significantly reduced that you pay and you'll be saving money, learning to be a landlord for the future, and building equity all at a young age! 

Additionally, you can find the 1% rule and positive cash flow here and get amazing appreciation.

You can assume about 1% in closing costs in addition to commissions so you're starting around 7% before the seller gets any cash at closing. 

Assuming the area checks out, I’d rather buy in a high price area that has little to no cash flow rather than an area that has cash flow but lower price.  

Hey John, if your priority is security paying off the mortgage in 5-6 years would give you a solid $4K/month net.Alternatively, you could use the HELOC to acquire a few rentals, likely in out of state cash flow markets with strong price to rent ratio.

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

Purchase price: $35,000 Cash invested: $35,000 Sale price: $110,000 Purchased off-market from a tired landlord, this fix-and-flip involved renovating a distressed property with outdated features and deferred maintenance.

Purchase price: $35,000 Cash invested: $35,000 Sale price: $110,000 A fix-and-flip project purchased off-market from a tired landlord involved buying a distressed property with significant deferred maintenance.