Any negatives to buying on a credit line and then doing a re-fi?

[Paige Hutchinson]

I have come across 2 duplexes and a triplex that we are interested in.  I was thinking if we buy them on our credit line, then after 6-12 months (whatever the lender requires as ownership time), re-fi to remove from our credit line.  My thinking is we would be saving on closing costs because a re-fi is very cheap and of course so is a cash sale.  We won't have to put 25% down because the re-fi is based on 80% loan to value.  Is there anything I'm missing?  This looks like a win/win to me?

[Chris Rosenberg]

I do the same thing as @Michael Hayworth and agree with everything he stated. If I need to close quick and will rehab it I’ll pay cash and begin the refi process towards the end of the rehab. If the seller is in no rush and the property needs no work then I’ll probably just finance it from the start with 20% down. Either way you can cash out refi later on if you choose.