Using HELOC to buy-and-hold, how do you pay it back?

[Will Porter]

I'm curious if it makes sense to use a home equity line of credit (HELOC) to fund the down payment & rehab on a buy-and-hold rent property, but I'm not sure what the exit strategy would be. If you just pay back the HELOC over time, it would be like having two mortgage payments (1--the mortgage on the new property and 2--the HELOC) and that would probably kill cash flow. So we probably want to see a different exit...

Can you do a cash-out refi or something else to pull out a lump sum to pay off the HELOC?

Here's an example of what I mean:

1. Obtain HELOC on Primary Residence A for $50,000

2. Purchase Investment Property B using the $50,000 for down payment, closing costs, and rehab

3. Refinance Investment Property B within a year to get the $50,000 cash out and payoff the HELOC

4. Now I have two properties (A and B) and one new mortgage (on B) but my HELOC is recharged to do it again

Is this possible? Or are HELOCs only ideal for flips? Or is there some other way to use the HELOC for buy-and-hold rent property?