Considering first investment property, down payment question.

[Jimmy Mooney]

I'm considering buying my first investment property using a HELOC on my primary residence. I have enough equity in my primary residence to cover about 4-5% of the purchase price of the target property. I was thinking of moving into one of the units in the target property and using FHA financing to purchase, so I could take advantage of their lower down payment (I'm pretty sure FHA won't finance an investment property). Live in it for a year, and go back to my original primary (or, rent out my original primary residence).

Has anyone used a HELOC to finance the purchase of an investment property for the down payment, and used it for an FHA loan, and know if this is a sound strategy? The cash flows are good on the target property (it's a 3 unit — 3/2, 1/1, 1/1) with established renters in the smaller units and owner-occupied larger unit so I'm confident on annual returns (about ~7-8%).

Thanks for the advice!