I actually just made a post about this on my YT channel. You shouldn't use a HELOC unless you are using it as short term debt (BRRRR, flip, bridge loan) not to use as a 20% down payment on another investment property. You need to have a plan to pay the HELOC off. Usually they have a shorter term or the rates are only fixed for a short term. Plus with high interest rates I highly doubt your new property will be able to cash flow supporting both those payments
Short term or long term? I would need more info. My question is "does it positively cash flow for a DSCR at 80%"? If your monthly rent isn't greater than your PITI + HOA then the cost on the DSCR will be much higher if they do the deal at all. We used to do tons at 85%, but we're seeing more and more investors opt for 25% - 30% down to get cash flow where the need it to be. Another question - is the HELOC already there or is it something you need to close? How long are you going to keep the loan open? Lot's of variables will vary what I would recommend.
@Doug Smith yes, positive cash flow (by like $100) with HELOC and 80% DSCR. HELOC is approved and will be using for short term (3-5yrs), DSCR still not approved. No HOA. Would appreciate your thoughts based on this.