Investor · Chesapeake Beach, MD · Member since 2013 · 273 posts · 37 votes
Am in the process of purchasing another SFR. The question is this. Should I pay cash for the unit or use a revolving credit loan at 6% that my bank is offering me.
How much will they lend on the revolving line? Collateral required?
The revolving line might be good to buy with, but I'd then be looking for permanent financing, as the line could be called or the rate could jump. I'd also want my return to be substantially higher than the rate I was borrowing at.
thanks for the input. Makes sense. The property is not an expensive one so I could pay the loan back anytime I want to if they decide to call it or raise the rate. The loan will actually pay 100% of the cost of the property which already has a tenant occupying it.