Appropriate HELOC usage

[Boris Alayev]

I am in the final stages of a HELOC closing. All is approved just need to get the papers signed and sent back. I am also in the middle of my first investment properly closing (waiting on appraisal completion and closing date schedule).

For those who have used the HELOC to buy properties, rehab and refinance them with either a commercial loan or conventional, do you draw the HELOC money and keep it in the accounts for 3 months before use? I ask because it is common for lenders to ask for 3 months or so of banking checking/savings statements. And when they see 100k deposited into the account they start to ask questions. My understanding is banks are not happy when you use a HELOC with a variable rate to put a down payment on an investment property.

What is the correct approach here? 

Thanks in advance.