HELOC then VA refinance

[Jeff Martino]

Hello BP community! My primary home is currently financed with a VA mortgage (3% interest rate and roughly $250K in equity). I'm planning to keep this property and convert it into a rental property while I find a new primary residence. My problem is that the market that I'm moving into is hyper-competitive and most sellers won't consider an offer with VA financing compared to the conventional and cash buyers also at the table.

I'm thinking about opening an HELOC to access that equity and combine it with my cash on hand so that I can make my offer more competitive. The plan would be to then refinance into a VA loan after closing and pay back the HELOC asap. I still have plenty of entitlement remaining for the VA loan so that shouldn't be an issue. I know I'd be running the risk that the house doesn't appraise to the full purchase price or pass VA inspection. Are there any other risks that I should be considering? Also, does a seasoning period apply to the refinance like it would for a BRRRR deal? Thank you in advance. I really appreciate any insight.