Hey BP Fam! I've been trying to learn how to incorporate a HELOC to create passive income, and I am hoping to gain more insight (pros/cons, correct usage of HELOC, etc…) with respect to two particular strategies. Hypothetical HELOC limit of $400k. Assume I have a full time job, so time is a factor. End goal of achieving financial freedom in the shortest amount of time possible.

Strategy A:

Become an equity partner with a flipper, use the HELOC to fund the purchase and rehab, with a goal of earning myself at least 10% of what was used in net profit (ex: I used $300k, after selling the flip and paying back HELOC, I profit $30k). Put profits aside into a war chest that will be used to buy long term rentals. Repeat process 2-3x's a year (netting about $60-90k per year to use to buy long term rentals).

Strategy B:

Use HELOC as down payment plus rehab on small multifamily with the intent to BRRR, paying back HELOC for re-use. With seasoning (6-12 months), most likely BRRR 1 property per year.

Strategy C:

Anyone else have an idea for how to use this to achieve financial freedom (relatively) quickly?

Thanks in advance!