HELOC Financing - More Heloc or More Mortgage?

[Tim F.]

I love this forum and I can't say how much I appreciate the comments and sharing of knowledge. My wife and I are getting close to starting our REI journey. We are pretty sure we know what we want to buy and where. We are also pretty sure we are going to utilize our HELOC for the down payment. One big problem is we are in an area where it is very hard to find deals. However, the area is VERY stable and low risk. My question is this, how much do you pay down with a HELOC? If I pay the minimum 20%, my cash flow will be low. I don't want a deal that cash flows less than $100/month. However, if I pay more than the 20%, my cash flow will go up. What is the cost/benefit of utilizing the simple interest of the HELOC vs the amortization of the investment mortgage? Is there a "sweet spot"?