Use your own cash over a loan for short term deal?

[Ben Mosier]

I’m and trying to weigh out whether or not to use cash on hand or New Construction loan….

I am in the process of building two triplex townhomes buildings for a total of 6 units. I have a new construction loan in place with a rate locked at 7% percent. I have yet to take a draw from the new construction loan.

I have the funds in cash to cover the cost of the builds in a high interest saving account earning 5%. What I’m thinking is to use the cash to fund the buildings instead of paying the 7% rate and would in theory be earning 2% more than the saving account. At the time the buildings are finished and rented out I will pull all the money off the new construction loan and pay myself back.

I need to use the cash in the next 12 months to fund the build of another project so I am trying to make the best of the money over the next 8-10 months without risking the principal.

Does this make sense? Or anyone have a better idea?