How does primary home HELOC affect Cash-out refi on investment?

[Jin Zhang]

I've heard people using cash from a HELOC on one property (A) to buy an investment property (B), then immediately do a cash-out refi on B and put the cash right back to the HELOC on A. I'm planning to do that, however I am just wondering whether the HELOC on property A (debt-free primary home in my case) will negatively impact my ability to get cash-out refi on B (an investment)? I am worried the unpaid HELOC plus the new mortgage would tip me off the DTI ratio. It looks like a bit of a catch-22: I can't paid back the HELOC unless the lender gives me the cash-out refi, but I can't get the refi unless I pay off the HELOC? How did you get to utilize the equity in your existing properties to invest in more?