BRRRR with HELOC in Baltimore MD?

[Dan W.]

What is the thought? 

I live near Silver Spring Maryland and I own my own single family house and have some equity in it, and also have a HELOC on the property which is at $0. I am wondering what the downfalls would be to going and buying, say a townhouse for $65k, invest $20k into it, have $95k in it after closing and holding HELOC % fee's (rough numbers), refinance it for $120k with a conventional mortgage and rent it. HELOC back to $0 in 3 - 4 months.

Is there any downfalls to this? I have spent probably years researching and learning real estate and have never pulled the trigger yet. That's why I'm asking for advice. I reckon If I did this, I could probably get a property management company to manage the property and cash flow about $250 a month. 

This would probably be in the Baltimore County, Anne Arundel County area. I'd prefer to keep out of the city but maybe that's just me being paranoid.