What would you do with access to low-interest rate loan

[Kateva R.]

My fiance and I have access to preferred lending terms and can take out a personal loan for a 5-year term at a 2% interest rate. We only pay interest during the term of the loan, and at the end of the term the loan is due in full. We also have 60k to invest in cash, and have a very aggressive 5-year goal to cash-flow 10k per month (we can do it!!!)

My question is - how do we best use this loan access without too much risk? Below is an example deal we are looking at for our first deal/loan:

Purchase Price: $140k (loan at 2%)

Rehab:45k (cash)

Total budget: $140k + $45k= $185k

ARV:$205k

Rent: $1550/mo

Costs used in analysis: 8% vacancy, 3% maintenance, 10% CapEx

After we rehab, do we do a cash-out refi at 4.5% interest, which would cash-flow $200/mo, and repeat a la BRRRR? Or, keep the money in the deal and cash flow $790+ a month (since we only pay interest on the personal loan), and repeat with a second personal loan?

Thank you in advance! This is my first post and super happy to be a part of the BP community :)