Some might argue for appreciation but that would be purely speculative.I see it could have been a popular idea in a pandemic-stricken world of 2020, but I'd place bigger bets on traditional residential real estate.

Columbus Ohio is a great choice.

Or I can get a Conventional loan and not need to occupy it and it's traditional not a investment loan....

Hi @Vinh Nguyen, while I agree with you that the interest rates on a cash-out refi are higher than a traditional mortgage, they are still much lower than hard or private money loans. 

If yet to have a client feel the need, but it is their choice.

I've come across a couple investment groups that are very gung ho about HELOCs, and while they do provide much more flexibility in payment compared to a traditional mortgage they're certainly not the silver bullet that some make them out to be.

So, I gave her 3 choices:1) $950 with a 1 year lease2) $1000 month to month3) Move out so I can re-rent at $1100The tenant chose option #2 and I'm ok with that.

We finally have enough capital to purchase another property with a 20% downpayment, but we don't want to go down the traditional path for our next property like we did our first, we want to BRRR it.

This may sound cold, but I am all for people who take risks without having a clue, suffering the consequences of their own choices. 

Daniel - if you will need  financing  for this idea - you might ask you friend  what  sources  they  use for their projects ....there aren't  many traditional loan  sources  willing to make  investment  property acquisition/ construction loans