HELOC vs Refinancing

[Rob Bianco]

I'm looking to scale my rental portfolio in 2020. I've got a handful of rental properties stabilized and I'm ready to take equity out however my buddy recommended I consider applying for a HELOC on my properties instead of refinancing. He said there wouldn't be any one-time bank fees associated with a HELOC and I could use the credit as needed to either scale or take advantage of short-term opportunities (flips I guess...)

In regards to short-term opportunities I understand 100% why HELOC would be advantageous, but flips are pretty tough to come by these days.

What I don't quite understand is how HELOC would be a better move when attempting to scale a rental portfolio? In theory would I take the HELOC money, make an all cash offer on an investment property, take another HELOC on the new property and repay the old HELOC and just rinse and repeat forever and ever ? If so, how is that really any different from refinancing?

I've also read that while the terms vary typically payment is required much sooner than when refinancing.

Any thoughts much appreciated