HELOC to make downpayment on Multi-Family?

[Michael Randle]

It would seem that a HELOC for a down payment on a new investment property when it comes to SFR or 2,3,4 Plex is a no go due to Debt to Income ratio.

But can I use a HELOC as a down payment on a 5+ unit?

[Matt Nolan]

I've used HELOC's to fund multiple purchases in the past. I use the income generated from the new property to pay it down, and then completely eradicate what's left using a cashout refi on the new property (once I've owned it long enough to do so). Basically the BRRRR method, but using the HELOC to fund the deal.