Seeking Advice on HELOC as Down Payment

[Brandon Seyferth]

Hi BP- thanks in advance for any insight you may offer.

I'm currently looking for an investment property in Chicago, IL (I'm hoping for Rogers Park, Edgewater area, but I'm open to settle for another area). I plan on using a HELOC on my current home as down payment (57k max). I also have cash in savings, but I plan to (mostly) keep that where it is as a cushion. My strategy is buy and hold. It's likely that I'll use an FHA product (pre approved at 4.48apr) for the remainder of the loan.

I'm thinking to refi as soon as possible after purchasing in order to pull my HELOC out of the property.

Does anyone have experience doing this successfully? If so, what might I expect during this process? Anything to watch out for? Anything I should keep in mind when analyzing a deal?

Thanks again!

Brandon