Purchasing all rental properties with Heloc's

[Mike Langin]

Hi, new member here in central Canada and have been reading the forums here, reddit and listening to the podcasts. 

Just curious if any investors use Heloc's only to purchase new properties after the first few rentals? For example; I have 4 properties ( I don't, just using it for the example), use the helocs to purchase property 5, brrrr it and then use the heloc from that one to purchase property 6. I can imagine from time to time you'd have to wait a bit to pay down the helocs in order to reuse them again but I believe it prevents the issue with getting mortgages. 

My main idea is to purchase 2 story houses, put as many washrooms and bedrooms in it as I can and rent to students in my city. I would have to rezone the houses for a fee to allow for boarding, and I would build a secondary suite out of the garage if it has one to either live in or Airbnb it. The issue with this I can see is I won't be able to force as much appreciation with the reno and be left banking on cashflow to finance additional properties. 

What are your opinions and comments on such a plan.