Using a personal Line of Credit to purchase then refi out (BRRRR)

[Miles Stanley]

I have a long standing relationship with my credit union.  I'm in the process of trying to set up multiple avenues of financing in the event i find a deal i can move on it.  I do not want to depend on a single source of financing.  I think this could be a problem if that single source doesn't pan out.

i had a thought of opening a line of credit (not a HELOC) with my credit union so i have it ready to go. I want to do a BRRRR-style deal so i wonder if i could get a big enough LOC to purchase and fix up the refi out to pay it off. The APY rate they charge is about 8.9% (which i understand is similar to private money rates ±). I know the rate is higher than conventional, but it would be short term. And i doubt conventional loans would help here (especially if the house needs work).

Has anyone purchased property with a LOC and then rented and refinanced the property to pay it off and leave a mortgage on the property (paid by the tenant)?

Is this possible?

Thanks,