Updated over 6 years ago on . Most recent reply
using F&C property as collateral vs Line of Credit
We have financed new properties in the past by putting up free and clear rental properties. Our past loans were 75% LTV and were amortized over a 15 year period with 5 year renewals. My bank has suggested a Line of Credit for new purchases where we put up 3 paid for properties with an estimated value of $1 million. Our CPA has no problem with this idea but I wanted to get feedback from those who have used this strategy. What are the pros and cons??