Use a HELOC for down payment/renovations?

[Jamie Derasmo]

Has anyone in here used a HELOC to use as down payment to acquire a new property or to complete the renovations? Pros/cons?

I have a good amount of equity in my primary house and recently bought my first investment property. I've used traditional mortgages and my own money for both. I'm currently doing the renovation on the investment property but I'm looking to continue the momentum of acquiring properties. I found a credit union that will allow me to do a 10-year HELOC on my primary house with 95% LTV with 4% APR, which repayment is interest only if I'm using the money. I'll have the HELOC open anyway for doing my renovation, I'll be able to pay it back in 6 months (after I refinance) and was considering closing it after that but wanted opinions on if anyone has used this method as additional line of funding to use as down payments or as renovations.

I have not looked into private/hard money lenders yet ( I am in Rhode Island) as I want to explore all my options and see what seasoned investor's have done.

Appreciate any advice!

Jamie