My goal is to leverage the benefits of real estate investing to build wealth and create passive income streams for the long term.While I'm eager to dive into the world of real estate, I recognize the value of learning from experienced investors and mentors who have walked this path before me.

I'm looking for a way to make my 80k cash grow and use to create a steady income stream. 

It would actually probably be a lot faster and easier to get the HELOC assuming you have enough equity and report your income.

If you are looking to create additional cash flow to supplement your W2 income then rent the property. 

Louis Fed.)Figure 2 (source: Financial Samurai) interest rates are not correlated to defaults. what correlates to defaults is income and expenses.

But - W2 income is your problem...not spending an extra $400/month :)

Stringent Qualification Requirements: Unlike hard money loans, which often qualify based on the asset itself, the HomeStyle Renovation Loan requires your income to meet specific criteria, and the property must meet a particular loan-to-value ratio.

Evaluate repair costs, potential rental income, and the overall return on investment.

And the possible Debt to Income ratio.

Personally, I had zero income when I first started out because I was self employed.