Personal Loan for buying rentals

[Wesley Whitehead]

All,

I have an opportunity to borrow 100K from my bank at 6.65% fixed for 60 months (this what I was approved from when I did the application not what the person at the bank said I could receive).  Did the math and it comes out to a monthly payment of 1,963.  I house hack in Miami and am provided a work car for commuting purposes so my housing/transportation costs are 0  Before I commit to anything, I wanted some input on PROS/CONS from some people here.  Mine are listed below.

PROS

Given the price point of where I am looking to buy, I could BRRRR a property and pay the loan in its entirety within a year

Continue to recycle the 100K using the BRRRR method as my cashflow continues to slowly grow and pay down the P&I on this loan over 5 years

CONS

My debt to income ratio will go up and hamper my ability to get more loans

I currently have about 160K in liquid reserves so why do into debt to BRRRR when I can use my own funds

I am of the opinion that the CONS outweigh the PROS but please share any insights/opinions you all have.

V/R 

Wes