HELOC for investment properties

[Dave Naphy]

Hi BP community! 

If I use a HELOC for a down payment, will lenders still be willing to give me a conventional loan? The home is currently rented for $3,000 a month with tenants in place. I am located in southern New Jersey (Glassboro). The COC will be right around 8%, with $500 in cash flow (after accounting for Maintenace, repairs, taxes, insurance, vacancy, etc.). I would be able to use the cash flow and cash flow from another property to pay off the HELOC.

I currently own two other properties in the same neighborhood. I purchased those properties by saving the downpayment. This would be the first time I'm using a HELOC on my primary ($250,000 line) to try and obtain another property. Thanks for any help/insight!