Using a Portfolio Line Of Credit to BRRRR
I currently own all my investment properties free & clear with around $600K in total value/equity. (Which is a lot in the Midwest/blue collar areas where median home prices are below $100K). I'm ready to start leveraging to scale and was considering financing all or several of them, but have started looking into just doing a business line of credit using all my curent properties as collateral.
That would give me a large amount to use to acquire new properties and BRRRR. The LOC would basically become my own private lender for myself at very low rates. Use the LOC to purchase and close fast on deals, rehab them, get them occupied, & refinance to pay down the LOC. Then repeat.
Has anyone else had experience doing this LOC method instead of actually financing their existing properties?
