Line Of credit on investment property

[John Truong]

Hello BP members,

I have enough cash to buy and rehab one property. But I can buy two if I can finance the repairs.

I have an idea of buying a rental property all cash. I will then apply for some kind of *line of credit* using the new property as collateral. I will use the LOC money for the rehab. Is it something that can be done?

My primary residence and 2 rentals are at or close to 80% LTV. My credit score is still very good; but my DTI is already at the limit, so I cannot get any more conventional financing or refinance cash out until next year.

 Thank you in advance.