HELOC on Investment property for down payment?

[Luke Larkin]

Hi everyone! 1st post on BP. I’m 24, I recently bought my 1st property, a duplex in west MI. Bought it at $145k with a 25% down payment, and it appraised at closing at $165k. Both sides occupied and cash flowing well. Currently have about $57k in equity.

Looking to purchase my 2nd duplex soon, have enough savings for another down payment, but curious if I could use a HELOC from the 1st property to supply a down payment on the next one (as little money down as possible). Assuming the next down payment will be around $40k.

1. Is it tough to get a HELOC on an investment property vs primary residence? Will it be tough to get a loan on property #2 if the down payment is from the HELOC?

I'd plan on exiting the HELOC by refi-ing within 2-3 years of owning the next property, assuming I buy under market value similar to the 1st property.

Appreciate any insight!