HELOC and Private Money to Finance Deal?

[Kyler J Sloan]

I found a deal that I am a bit reluctant to take, but have reasons particular to me that make it attractive. 

With a modest estimate it should yield an ROI of just over 20%, but in order to get it I would have to use a HELOC for my down payment, and potentially some private money or personal loan to finish staging it as a STR.

The issue is, this is my neighbors property, right next to another STR of mine. By purchasing it, I would own the entire mountainside, and could offer joint bookings to access those looking for 8+ bedrooms, connect them with hiking trails, and offer amenities that complement one another (i.e. home theater in the larger one, different types of games, etc.).

I do think I can pay off the private money within 3-4 months, and the HELOC within 6-8.

Just looking for some feedback on whether I'm letting emotions clout my judgement in paying so much in interest. 

[Zach Edelman]

How are you underwriting this deal/with what interest rates on the private money side? What are your current estimates? I know for DSCR loans right now, specifically for STRs, rates are typically anywhere from the mid 7's to low 9's depending on the scenario.