Can using money from my HELOC will interfere with being able to cash out from the same house?

[Yoram Aharony]

Hello members with knowledge of financing in real estate. I own a condo for which i have a HELOC. I want to do a cash out deal on the condo because its worth 800K and i paid cash for it. Yesterday i found an amazing property for which i need 100K down payment and i was thinking of using my HELOC money. By having a none zero balance do i hinder my chances to get approved for cash out on my condo? Some mortgage brokers gave me mixed and unclear answers that "its probably not a good idea". To me it does not make any scence, why cash out can not be the same as refinance where some of the money goes to balance and some of the money goes to cover any previous loan which is in my case would be the HELOC.