Getting started: HELOC to initially finance?

[Steve Scasta]

Good morning all, I'll get right to it. My wife and I are looking to purchase our first rental property. We currently own a wholesale distribution business and I was talking with my commercial banker about financing options. In addition to traditional options, he suggested taking out a HELOC on our current home as a way to make a cash offer with quick close and then finance with a more traditional mortgage product after the property is secured. If I'm understanding correctly, it's basically BRRRR with me being my own hard money lender.

1. Am I looking at this right or missing something?

2. Is anyone in the BP community using this method or have you in the past?

3. Lessons learned, positives/negatives, etc.

Thanks in advance!