Using line of credit for down-payments?

[Chris Ryan]

Hey Biggerpockets, I've dabbled in residential real estate for a while but am thinking about moving up to commercial. Hoping to get some clarity on the commercial lending space. Here are two scenarios to help explain my question:

A. Using cash our refi proceeds from a few free and clear duplexes as down payment for an apartment building, first use loan with regional bank to stablize then refi into agency debt after a couple years.

B. Pulling from LOC on a few free and clear duplexes as down payment for an apartment building, first use loan with regional bank to stablize then refi into agency debt after a couple years.

Scenario A is presumably fine, I'm wondering if I should expect any issues/hiccups with scenario B before I decide whether to put LOC or rate and term refi on the duplexes? I'd prefer LOC and have a bank able and willing to write it for me, would be a 10 year term. I just want to be sure, if I find the right commercial opportunity could I use the LOC for the down payment?

Thanks,