Borrowing from LOC for down on 5-12 unit

[Ashley Cann]

I am looking to purchase a multi unit building. Looking at building with between 5-12 units. I am feeling nervous about how I plan to find it and would like some feedback.

The plan is a combination of lines of credit.

We have a duplex with some equity, I think we can get a HELOC with $40,000 from a local credit union. I'm in the process of getting this and don't know the I interest rate yet.

My husband and I have access to unsecured lines of credit, one is $40,000, another $13,500 and the third is $10,000 for a total of $63,500 of unsecured credit at rates between 8 and 9%.

So if I find a deal we have access to $103,500 in credit to use for down payment, closing costs, and some reserves.

What are people's thoughts on using unsecured lines of credit with such high rates? I initially the cash flow would probably be just paying the loans so I'm not sure if this is the best option, but I would like to get another property by the end of the year and so far I don't know anyone who would want to partner with us, although I am looking.