To pay for this, I used a heloc on my current home.

Would a HELOC or home equity loan on my personal home be a good idea to fund this?  

We have a 3% rate so dont want to refi but the property has appreciated quite a bit so would like to tap into that equity to fund our next deal.I am having some trouble finding lenders that offer helocs on investment properties.Does anyone know of any banks and/or lenders that do helocs on investments?

I want to use my current home and do a HELOC.  

Will you use the HELOC as a short-term bridge, or plan to hold it longer?

On the lease, he'll pay me $100/m over my HELOC payment and all other expenses, including the refi cost, inspections, title work, etc... 

Quote from @Will Cruz: Does anyone know of a Bank that is willing to do a HELOC on an investment property?

What do you guys think about this strategy of opening up a HELOC in hopes of freeing up some of my other capital.  

HELOCs are usually variable rate and there may be yearly fees associated with maintaining the HELOC.

Once the property is sold we will be able to pay off the HELOC and will also have further funds coming in the following year.