Rehab with a Credit Card...hear me out!

[Jonathan Chandler]

Ok guys. Curious question here.  Just so you guys know up front I do not currently have ANY credit card debt, and I pay them off every month if I use them.  

Now that that's out of the way.  I am extremely lucky that I obtained a fixed preffered rate credit card with a fixed rate of 5.7%. I've had it for over 10 years, so it is awesome to get that kind of rate.  This card also has a credit limit of $30,000.  So that's up to 30k at 5.7% anytime I want it.

Here's my question or concern.  Say I use a private lender and he gives me the money to pay for a property with cash.  I then use the credit card to do the rehab.  Theoretically everything is good up to this point.  Now say some time goes buy and the place is rented, and now I want to refinance.

With the refinance my goal would be to pull enough cash out to recoup my lender and my credit card.  The big question is what will a lender think if I have 25 of the 30k on my credit card?  Will I qualify for the loan?  Could I explain that the cash out refinance would pay it off?  

I would hate to do this and then the banks are saying no on the loan when everything else is lined up perfect, like over 800 credit score and low debt to income ratio. 

Sorry it's long winded but, what do you guys think? Would you do it?  How could we get creative with the 30k line of credit?