Using a credit line and paying it back
I'm in the process of acquiring a credit line on a property. I'll have a $200K credit line soon. I know I could do a BRRR with a property under $200K but what if the property is over the $200K mark. How best do I use this credit in purchasing a property for let's say $400K? My credit line has to be paid back within 12 to 18 months. Thanks for your help!
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#2 Out of State Investing Contributor
- Flipper/Rehabber
- Pittsburgh
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#2 Out of State Investing Contributor
- Flipper/Rehabber
- Pittsburgh
OK. BRRRR is tough, and BRRRR is expensive. And BRRRR is extra tough right now. You have to find a great deal - usually off market - and be able to add significant value via the rehab. And you have to factor in all of the costs that get ignored on BP - closing costs, holding costs, refi costs. And then when you refi your interest rate is going to be high, making it tough to cash flow.
I'd start small and wait until you find something that works.