Advice on purchasing an investment property with a HELOC

[Nathaniel Tant]

Hello fellow Pockets!

I am in a situation and need some advice. 

Situation:
Property is for sale at $175000.00 and could appraise for over $225000.00 once it's remodeled. Or it can be rented out in the state its in with a cash flow of $200-$300.00 a month. This will be my first rental property, so capital is non-existent. However, I do have my HELOC on my current home to leverage a 20% down payment. If I take the HELOC out I'd have to pay it off myself if I wanted it paid off in a decent amount of time. This seems counterproductive because it would be costing me money to pay the HELOC off. Since I dont have any capital, this seems like the only way to get into the business. Is this a bad strategy?

[Nathaniel Tant]

@Jaron Walling, I can handle both my mortgage and the rental mortgage comfortably with zero issues. The cash flow does not include the heloc payment. If I paid the heloc off with the cash flow it would take a long time to pay it back down. My mindset is this, you have to save money to create capital, so whats the difference when you're paying off a heloc out of your own pocket? either way money will have to come out of your pocket? i'm new at this, but thats where my head is at.