Using HELC for down?

[Dennis Standers]

Hello Everyone, My wife and I are trying to buy a duplex in our town. We already have a nice SFH that we are renting out and we are now renting an apartment to live in. We have had the rental home for about 2 years and we are looking into a home equity line of credit to use as a down payment for the duplex and get FHA at 3.5% down. We will live in 1 side and rent out the other. Has anyone used this model for getting started? What obstacles or pitfalls may I encounter? Will this model work? Thanks to any input. Dennis