Using A HELOC for Downpayment

[Jason Stubblefield]

Hey BP, I'm a bit of a newbie with investing in multi-family properties. I've been looking at properties with intentions of using my HELOC for the down payment and recently found a great deal. My problem is that I'm unsure of the best way to use my HELOC. I have just enough of my personal funds to cover the down payment but it would almost completely wipe away my savings. I applied for the loan but didn't tell the bank about my HELOC. They said they weren't comfortable because I wasn't liquid enough. If I do tell the bank I'm going to make the down payment with my HELOC they will frown because I'm using borrowed money.

I did read about people transferring HELOC money over and letting it season in the account. Consequently, I'd now be making payments and interest on money I'm not using. Also I wouldn't want to have to wait 2 - 3 months to try to make a deal work again. Does anyone have any strategies for making this work?