Line of credit as down payment then pull out equity
Would this make sense and should I do this? I am a long way from having a down payment, but I have great credit and have a large amount of credit available. I am still new to REI and my strategy is to buy and hold.
Would it make sense to use a line of credit to put down as a down payment on a house to avoid PMI and finance the rest through a conventional loan? I'm thinking, if I put down 20% deposit, I would then have at least 20% equity on the house, where I would take out the equity and payoff the line of credit. From there, I would just payoff of the mortgage and rent it out. If the mortgage payments make sense, should I finance this way?