Question about utilizing a HELOC to purchase first rental property

[James Potter]

After cramming my brain with a lot of up-front RE knowledge, I have an important question for the BP experts. My wife and I own our primary free and clear. So, let's say I open a HELOC on our primary with a ~$250k limit and find a good turnkey SF to purchase for $200k. I pay cash for it. Then, 6 months after acquisition, I do a cash out refi; get ~$160k or 80% out; and then pay off the remainder of the HELOC. Would it be possible/wise for me to quit claim the house over to [my new LLC] prior to the cash out (via commercial lender)? It seems like I could rinse and repeat this process to hold each property in its own LLC, which I like the idea of. Any help would be greatly appreciated!