Financing BRRR question - commercial or personal loans?
So, I have a question about financing rentals and flips. Here is my current situation (I’m in the Raleigh, NC area):
Wife and I have high 700 credit scores and W-2 income
We have an LLC which we have not used to purchase property (just switched the purpose to REI). All the below business lines and credit are entirely unused.
$50,000 business line 8%
$25,000 business credit card 10%
$48,000 business credit card line (0% until 9/18 3% transfer fee)
$27,000 business credit card line (0% until 9/18 3% transfer fee)
Personal credit line $25,000 (9.25%)
Personal home equity line $104,000 (3.4%) using this for current flip rehab
We just bought our first flip project under my name and plan on more. However, I'd like to start investing in rentals using the BRRR strategy but I'm wondering how to finance it?
Do I purchase through the LLC? If so, will I have trouble refinancing afterwards?
Or do I buy the properties under my wife and or my name but then forego access to the business lines? Could I use my business lines to fund properties under our personal names?
I imagine this is pretty common for those of you with LLCs so I'd love to hear some advice about the best way to line up financing. I want to start investing in multiple properties and setup a financing structure we can repeat consistently that won't handcuff us in the future (DTI, cash on hand, etc.). Thanks in advance for any help you can provide!