Home Equity Line of Credit to buy investment property question

[Glenn Pelt]

So here is my question. I can currently take out a home equity line of credit on my primary residence with a local bank for about 100K. The rate is 3.5% and will have a 5 year term.

My question is cant I use this to purchase an investment property and then cash out refi to pay off the credit line and do it all over again? I would be avoiding the hard money fees, points and high interest rates.

The property i'm interested in buying is 54K+25K for rehab, arv is conservatively 130-140K. Its a 3 family. The local bank allows cash out refi's with a new appraisal after 6 months. They are a portfolio lender.

So why couldn't I just pay cash and rehab costs with the equity line then refi 75% after the 6 months, pay off the equity line and do it again?

This seems reasonable to me, and frankly pretty basic but am I missing something?

I look forward to everyone's input.