Using HELOC on buy & hold

[Jason Wu]

Hello my fellow BP friends,

So I am considering doing a HELOC to make about $60k available toward a rental property. The rate on the loan is hovering around 5.6% and I am thinking to use this entirely as a down-payment towards a duplex in FL that generates first year Cash on Cash for about 6%.

Second option in my mind of using the HELOC is to put it in private lending space. If I can fund short term loan within 12 months that can generates a 8% ROI or above on first year.

Which would be ideal way of using the equity line? What are the risks vs rewards that you guys see on these options?

Are there other options to invest HELOC?

Thanks everyone!