depends on your credit if you can get a mortgage or your ability to find good deals that you use hard money for and then refinance into DSRC.  

Brandon Turner does a great job going over different strategies in his book "Invest in Real Estate with No (or little) Money Down".

Do you have money set aside?

It can be only for the reason that you got your money working for you instead of the other way around. 

Get that money working for you.As for where to invest. 

It’s easy access to the other neighborhoods   Lots of potential development space for bars and restaurants   Lake effect brewing is dumping money into a brew pub.  

Or is it a hard money then DSCR post?

Don’t get me wrong, some people have been very successful with OOS the last 10 years, but today is a very different market from 2012-2020, and I think you owe it to yourself to understand what can go wrong.

However, this is not a cash out refi.Cash out refi is when you refinance an existing loan, with another one (i.e replace the loan) where there is enough money left over at the end of the process where you can put some proceeds in your pocket.When it comes to your strategy - just make sure you're being conservative with your numbers on the purchase / rehab if you don't plan on using other proceeds to payoff the HELOC. 

Get busy making money.