CREDIT CARDS FOR MY CURRENT REHAB??

[Laurence Obi]

Hi Bigger pockets family,

So.... I am considering getting two $40k limit credit cards and using them for my rehabs going forward.

Question is, some of these will have a 0% APR for the first few months and this will come in handy. However, the utilization will be on the high-side, probably over 50% of total limit. Is this going to affect my credit negatively? Will definitely be keeping my cycle between 3-6 months

Need advice. Would also like to know what Credit card companies you all would have me use 

Thanks in advance.

[Nathan Gesner]

I don't advise you to use credit cards to fund investments. That's a disaster waiting to happen unless you have proven yourself financially disciplined for a long time. Even then, you're borrowing money in the hopes that you can flip the property and pay off the cards. What if you rack up $30,000 in renovation costs and then can't sell the home? What if it sells for less than you anticipated? You can easily be stuck with a massive debt at high interest rates. Bad, bad idea.

Even using a line of credit is risky but at least it has a reasonable limit on the interest rate.

Best option is to save up and invest from a position of strength.