Financing with Personal Credit

[Marcus Hill]

Hello!

I recently refinanced my primary home, and am now looking into getting a HELOC to use to acquire a rental property. My plan is to BRRRR, which would include credit pulls for the purchase (hard money) and refi of the rental, all within the same year. My question is this: Is it ok to be doing this all on my personal credit? Will my personal credit take a huge hit with all these loans back to back? Is there a better way to set this up or is what I'm doing pretty common? I just don't want to mess up my personal finances too much IF there's a better way to do it that I don't know about.

This would be my first investment property so I don't know if I'm overthinking this or if there really is a better way.

Thanks for your help!

[Joseph Firmin]

Hi @Marcus Hill, you have a couple questions so here are some answers: 1) Yes you can use your personal credit. 2) Yes, taking out additional credit and then using it to its max will pull down your score most likely - BUT, it will come back when you pay it down if you execute the BRRRR strategy correctly. You're taking a calculated risk, make sure your numbers work well. I am curious as to why you are refinancing and then doing a HELOC. Why not just refinance into a 1st lien position HELOC, then use the HELOC as your source of funds. OR - do a cash out refinance and use the cash as your funding.