Heloc as down payment then refinance

[Vincent Q.]

Hello All,

Can anyone give advice on if this is a good way to invest. I have one single family investment property.

I am looking to get a Heloc and buy a second investment rental property.

Is this a good strategy.

Heloc to obtain the property which would be 20% down plus closing costs.

Get a tennant in place.

Then refinance and pay back heloc

Your advice, comments, and suggestions would be a big help.

Please help me!

[Account Closed]

@Vincent Q. why refinance out the 20% you put down with the HELOC at all? If you get a good loan, just pay back the heloc with the rent profits. Or with cash you have in the account that you would use for a downpayment?

Unless you're trying to "BRRR", which is a method I very open advise against, I don't see any real need for you to refinance here.

Thanks!