When you draw from the equity, you are "borrowing" it from the bank and have to pay interest.If you borrow against the equity at 7% interest and then loan it out at 15% interest, you are earning a positive 8%. 

If you don't like Dave Ramsey then we can look at Big Bang Theory where Penny borrowed money from Sheldon and even though he didn't care about what she was spending or when she would be paying him back, every time he said anything she thought he was grilling her about that. 

Many of our borrowers/clients have one LLC that owns the building and another than own the operating business.

Quote from @Pearse Cafiero: You want to borrow money to buy a house, but you don't have the downpayment.

HELOC or 401(k) Loan – Use equity from an existing property or borrow against your retirement to fund a down payment.4.

My team has conversations all the time with borrowers, especially those that own real estate, that  thing DSCR options are their ONLY options.

Personal Financial Statement Borrower’s Schedule of Real Estate – or- Resume illustrating experience2-3yrs Personal & Property Tax Returns – All schedulesPrevious Year and YTD Property Profit & Loss statement w/ detailed expensesRent Roll w/ detailed lease informationCopies of all Leases3mo.

Regarding risk, go to your local real estate investment association, tell everyone you are new at investing and want to borrow down payment money for your first flip.

When you borrow money you agree to pay it back.

Got an equity line of credit and borrowed from it to pay cash for the property.