Using HELOC to buy a house then convert to mortgage?

[Derrick Wortman]

Hey Everyone! I'm fairly new to investing, this will be my second investment property but first time using a HELOC.

I have a $117k mortgage left of a house that appraised for $150k. The bank my mortgage is through generously offers 90%, leaving around $18k in my HELOC. My question is this:

I found a potential investment property that I could rent out for $700/mo purchase price is $16k. I want to purchase the house with the HELOC, then convert that HELOC into a mortgage to make those $18k funds available to maybe purchase another house. Is this possible to do? Do I have to wait until I have someone renting it, a year, or maybe longer? Thank you all!