I will raise reserves to 9 months fixed cash on each, plus 1 month variable(equities) & replenish any capex account that has been touched.

But with a variable rate, and it collateralizing my primary residence, I like to refi into longer-term fixed rate debt if I'm going to hold.  

I recommend you do this each year to adjust for utility increases and other variables.

These unknown accounted-for variables, if you recall,  played a significant role in the demise of the financial system over a decade ago.

When building, there are so many variables that can affect your plans.The lower risk and easier barrier to entry for a newer investor is to buy a property that is cash flowing.I hope that helpsGino

It's variable interest rate and the fact that it has to be continuously collateralized by equity in your primary (which can rise and fall with the market) makes it inappropriate, in my view, as a down payment on a rental property. 

Obviously there are a lot of variables that go into calculating insurance premiums, so your situation may be a lot different than ours, but I HIGHLY recommend getting in touch with a broker and having them evaluate all your insurance.  

@Sean Dawson Typically if you need the money long term it's better to do a cash out refi and for short term the HELOC...The HELOC can be advantageous because once it's open you can access the capital quickly but it's better off as a bridge loan since they can carry variable rates.

I've never done this before so maybe I'm seeing this through tinted glasses and am missing an important variable when considering this option.

One of many variables that may impact the housing market in some form...it already has helped buoy the apartment industry.