Business Line of Credit

[Ryan Ahlgrim]

I’m planning to do some buy and hold investing in 2014 and am looking to use a business line of credit for my down payments when purchasing new properties. Depending on the lender, they will require a 10% - 20% down payment. So for a $50,000 property I’d borrow $5,000 on a line of credit then pay it back within 3 – 5 years.

Good idea? Bad idea? Has anyone done this?