New to Real Estate · OK · Member since 2018 · 4 posts · 2 votes
I am curious to know if I can use a business line of credit to finance a 20% down payment for the purchase of a 4-plex that would be owner occupied? Then could I refinance the property to pay back my line of credit? I thought this was a great idea but know I'm seeing that if I don't pay for PMI I would be paying back the line of credit. Am I missing anything? Is there a benefit to what I thought was a good idea? Any help is appreciated!
It is never a good idea to borrow money for a down payment (unless you refinanced another property and using the proceeds for your next investment). When purchasing any type of investment property, you need to have the down payment of 20%-25%, closing costs ~5%, reserves ~5%+ and rehab fees in cash before putting in offers.