HELOC For DP/Rehab

[Erik Dofelmier]

We are getting ready to close on our first MFH at the end of the month. It has current tenants in there and they’re paying below market rates. That said the unit does need work. 
My plan is to utilize my HELOC for the down payment as well as for most of the rehab. This allows us to save our savings for an emergency or unexpected life expenses .

I do understand that using the HELOC will affect my cash flow numbers since I’ll be paying for two loans, but I plan on using it temporarily (less than a year) before trying to refi. What am I missing?  Is it a good strategy?  Is there anything else I need to evaluate?  Thanks.