HELOC to traditional lending.. BRRR

[Jason Burnside]

I currently live in Greenville SC and looking to purchase another single-family property as a rental. I have a significant amount of equity in my primary residence and looking to leverage the equity through a HELOC. I still have a mortgage on the property but don't want to refi due to the existing low interest rate.

I am interested in using the HELOC to purchase the rental home and fund the capital improvements needed for the property. In theory, I would like to rent the property after the improvements are complete and get long-term financing after the fact and pay off the HELOC.

Below are a few questions I have relative to this plan:

- Is there any risk of securing long-term debt once the plan has been executed? 

- Overall, does this plan make sense or is there any way to leverage existing equity in my property for a rental property.

- Is there anything else in this equation I should consider before I go secure a HELOC?