BRRRR with refi plus HELOC to increase LTV
We know that a cash out refinance is preferable to a HELOC to pull capital back out of a BRRRR. But for conventional loans, the LTV is 75% and for portfolio loans it's typically 75% or 80%, unless you get lucky. Uncertainties in rehab cost and appraisal (or shortage of killer deals) can sometimes land you too high for all in costs or too low for ARV, such that you can't pull out all your capital.
I wonder if, after finding the right lender to do it, I could have as a backup plan to raise my total LTV to 90% or higher by taking out a smaller HELOC on top of the cash out refi. Since it's not a huge HELOC, and as long as the property cash flows enough, rental income could pay for both the mortgage and the HELOC, and the HELOC would get paid off in a relatively short amount of time.
Thoughts?