What would you do? Potential to HELOC on one of 4 rentals to expand portfolio.

[Jay Orchid]

Hello! New to the BP forum and joined out of curiosity for a hypothetical scenario.

I know everyone's situation is different, and everyone has different needs and priorities within Real Estate.
So I was curious on one of the many situations one might find themselves in.

In this scenario I wanted to ask if a HELOC on either your primary or an existing rental property out of 4 total properties would be a viable strategy for acquiring practically " turn-key " Multi-Family rentals?

If you were able to pull out $500,000 in existing equity out of a paid off rental and disperse those funds to acquire 2, 4-unit MFR properties and had the income to support any future CapEx and the interest payments on your HELOC ( including the extra income to paydown the loan ) would there be any " gaps " or problems I'm missing in this situation where it would be a bad enough idea to not go through with acquiring more properties through a HELOC on 1 of 5 properties you own?

Also how do folks feel about Real Estate buyers who aren't investing for maximum Cash-flow, but instead investing for long-term equity, appreciation, and eventual cash-flow? Since my scenario uses essentially turn-key condition multi-family rentals in an appreciating market ( West Coast major city ).