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LOC vs paying cash

I have a business LOC I can access and was going to use some it for investments. My corporate account holds investments that are Corporate Class ETFs so I am wondering if I used the LOC for those investments would the interest deductions become invalid?
If that is the case are there any suggestions as to what ETFs one might invest in using the business LOC in order to deduct the interest but not get hit too hard with the passive income tax within the corp. I’m assuming XEQT would work with a relatively small distribution rate.
For clarity my LOC rate would be 3.95%.

Generally a good idea on a cash offer IMO would be to specify cash with no financing contingency but you still withhold the right to use a preferred lender if you choose. Then, you can apply for a mortgage in parallel with using a LOC (that you’ve already set up) to meet funding for closing. The LOC would function as a backup to the mortgage if that fell through.
Anyway, if that’s not how the contract is structured I don’t think it’s *dumb* per se to use a LOC for a longer term purpose. It just changes the risk characteristics of using leverage to purchase a home quite a bit. Typically a LOC would be for a shorter term practice as the variable rate and variable margin requirements can make the situation untenable quickly.
If you have a large enough bond and/or dividend portion of your portfolio then this can help pay for meeting the interest on the line of credit until that balance is satisfied. And can help keep assets invested.
If you can pay down your SBLOC / PAL balance to an amount that allows bond interest / dividends to make payments and the total amount is less than about 10-20% of total assets then that would restore a lot of safety in the loan structure.
Otherwise, the broker could force you to sell at the worst possible time to cover a margin call… compared to forced sell at a market bottom it *would* be better to sell now to make the cash funding possible if you want to think of it that way.

The standalone file is 33k LOC

Good points here.
I will add a few other use cases: a lot of people I know have used lines of credit to start businesses as a bridge or to cover different aspects of business operation. Or, some would use a LOC and time that with liquidity events or to assist with deferring income if they had a deferred compensation plan available to them. Etc.
One can use the bond income from their portfolio to offset / repay the lines of credit on any outstanding balances. In that case a line of credit and using bond income makes it more like an interest rate swap in spirit, if not with precisely the same terms.
Last, margin loans are really more precisely used for buying assets on leverage whereas LOC are used for income using assets as collateral. One could use a margin loan to lever up the bond income from above I suppose to assist in covering a LOC… but that’s definitely getting away from a boglehead philosophy.

I have a several bedroom house in a vhol area. but we literally just use the master bathroom bedroom and living room.
For the other portion of the home, it’s just sitting unoccupied.
I evaluated the roommate option, which doesn’t seem to be pratical because that portion doesn’t have a kitchen. and it’s considered inhabitable if you do not have a kitchen/kitchennett
I don’t have plans to sell, because it was bought very long time ago and it has a low tax base.
Any smart idea how to utilize the bedrooms that are empty? No strs are allowed in the city.
and because it is literally a portion of my own house, i have no intentions to do str for safety reasons.
Empty nesters, any creative idea?
Yes, equity investments are way more rewarding but I need a place to inhabit.
I thought about LOC and invest them into
nvda, soxx, avgo, and amd etc. but LOC is too expensive nowadays

I mean, at this point, why not just use your LOC as actual leverage for your main portfolio?