Boomerang HELOC method, is it possible?
I've been wondering, now that I have accumulated some equity in my current home, could I get a HELOC and use those funds as a down payment for a property. Then assuming all things being even, I am able to secure the property and put a renter in it, can I then refinance the property for the total of my down payment plus the rest of the mortgage so that I could quickly pay back my HELOC. Also aside from any closing costs I am uncertain if I would need any money for the refi?
However if this is even feasible, that would mean I could then use my HELOC rather quickly again to go out and acquire another rental property. Hence the name Boomerang HELOC method. In my area property values are stupid high, but rental potential is also high, so I am looking for a way I could begin investing without waiting till I'm 130 years old. I am also not comfortable investing in a real estate market far from where I live because this is the only area I am very familiar with. I am looking in the NoVA D.C. MD area.
Any insight, advice, or criticism is greatly appreciated!