Please guide my through this hypothetical process
1. Borrow a line of credit to have cash buying power
2. Purchase prop.
3. Refi conventionally. (This is where my questions come)
a. Is this technically even considered refinancing, or is just considered mortgaging since there not a previous mortgage in place (again, I used an LOC)?
b. When doing a refi, will the bank want 20% down? If so, can I use 20% of the original LOC to put down on the refi?
c. Would interest on an LOC typically be outrageous on a short-term transaction such as this one?
d. Would lenders typically do a refi this quickly after purchasing, or is that lender specific?
4. If this process does work, can I continue doing it until my properties generate enough cash flow so that I do not have to use an LOC?
Thanks SO much
Fred