Using HELCO to purchase another property

[Troy Yates]

Hello, new here so this might be basic or stupid. 

I have two STR properties and trying to continue to grow, I was able to secure a HELCO on one of them and was thinking of using it to buy another STR.

The cash flow is there to cover the interest and principal on the HELCO so the added cashflow from having another property would grow my bottomline overall I believe (please tell me if Im wrong). 

I know many say to do a cash out for this but both of these rentals have sub 3% rates so it seems silly to refi now at a 5-6% rate. I have also owned both for less than a year.

So my main question is, is it smart to use a HELOC for this purpose? It would likely take several years to fully pay it back, is this a common strategy for growth?

I have the one HELCO now and would likely be able to obtain another from my 2nd rental as well. As mentioned Im still new and really trying to grow while asking as many questions as possible to be smart in the process! 

Thanks!