Mortgage first or LOC

[Wendy S.]

Good day all. So my daughter finally got her offer letter which is pretty decent. Now here is the thing, I'm wondering is it better to have her apply for a line of credit now, just to have in case we see a cash deal, or have her apply for a mortgage then get a line of credit?

Based on tentative discussion with broker she can qualify for abt $200,000 primary residence and $100,000 investment property. So this got me thinking, why not get a primary but then have access to cash for a deal, instead of putting 20/25 percent down on an investment property.

Of course if we went the route of buying a cash purchase first, technically I would be using her LOC to fund the deal, but not buying in her name so she does not lose her 1st time home buyer opportunities. Also ideally this would be a quick flip so LOC would be repaid at time of her applying for a mortgage.

Primary goal is to have access to cash, so the LOC would not even be used if we don't see a quick flip opportunity.

Any thoughts @Andrew Postell, @Chris Mason? 😊