HELOC purchase into a conventional refinance

[Reid McCutcheon]

Hi, Question on whether or not we should apply for another HELOC and how that may affect our ability to refinance into a conventional loan later on.

We currently have a $150000 HELOC based on a few rentals. A little over $100k is available. We owe $49k on that one due to having to dip into it after some renters destroyed a rental and it required a good chunk to get back up to speed. Current rate is 8.5%

We own a STR that we purchased for $450k at the beginning of 2022. Gross rents were $66k for the first year. We own it free and clear and were thinking about applying for another HELOC based on that property. I think I'd prefer the HELOC since, unlike a conventional loan, we don't have to pay anything on it if the money isn't in play. But I guess the concern is that with so much credit to our name, would it make it more difficult on our debt to income if we purchased a property with cash from the credit line to make for a quick and easy cash sale and then turned around and set it with a conventional fixed mortgage to quickly pay off the HELOC. Basically, would having an extra HELOC lessen our ability to get conventional funding?