Is it smart to use HELOC as a cash offer for investment property?

[Andrew Rader]

Hello! I have recently discovered the HELOC tool but was wondering how to best use it. To me, it does not make sense to use for a down payment since the return on the property would have to cover the new loan and HELOC interest payments. However, could I purchase an investment property in full using a HELOC and then refinance the property and pull out the initial HELOC investment? Hopefully this scenario makes sense! I would love to hear your experience and/or thoughts. Thanks!