HELOC to purchase second rental?

[Varinder Kumar]

Now that my first rental is giving me a $500 cash flow I have about 120k in equity as well. I can probably use about 60k of that as a HELOC (home equity line of credit). I would like to purchase more rentals but do not have the down payment. Would it be a good idea to use a HELOC to purchase my second investment. I'm aware I have to make monthly payments on it. And depending on the amount I take out my cash flow from my first(current) rental may pay for those monthly payments on the heloc. I can save up money for another down payment but that may take some time. I love in California and looking out of state-Austin, TX, Phoenix, AZ etc where the down payment required at 20% not a lot due to the price of homes out there compared to California. I would really appreciate some advise as how to best move forward effectively. Thank you!