Using LOC to pay cash for below market tenant

Using LOC to pay cash for below market tenant

Member since 2019 · 22 posts · 4 votes

Have ability to lock in a condo using cash reserves and an etrade LOC.

current tenants have been in for 6 years. Currently they’re 4-500 $/month below market rent. I could bring that up to 3-400 $/month below market.

Will take approximately 9-12 months of aggressively paying back my LOC for the unit to cash flow from an operating and interest payment perspective. Would wait for rates to fall to do a cash out refinance.

What would you do or consider?

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