Velocity Banking Question

[Abner Castaneda]

From what I have seen it seems that velocity Banking is quite controversial. 

I understand from a savings aspect that it won't be much of a difference to use a LOC compared to an extra mortgage payment, but is there any legitimacy to the following example:

You paid off the entire balance, now you can use the heloc to buy a cheap rental property. Say it's a 150K limit and you use 50K to outright buy the property and whatever you need for rehab. Repeat the process of paying it off then get another one.