Using HELOC as a down payment

[Christopher Ward]

Hello everyone, 

I'm considering using a heloc for a downpayment on my first property, however every time I run the numbers through the rental property calculator, the monthly cash flow in usually under $100. I understand the reason behind this is I have a larger P/I payment which eats into the cash flow. My ROI usually is good due to me only paying closing costs and repairs.

In this situation, is accepting a lower cash flow acceptable if I'm doing it low money down? I know Brandon Turner states $150 to 200 is good monthly cash flow but I believe he factors in a 20% DP when I see him use the calculator. 

If I used a heloc, I would refinance into a 30 year loan before the APR rate increases.

Thank you for your time, 

Chris