Using lines of credit short term to DSCR closing costs…

[Michell Chase]

I've already purchased 1 rental property (a duplex) this year with a conventional mortgage. I withdrew from my 401k for that as I am retired. I would like to buy my second duplex using DSCR loan which will require about $63k total to close. Taking another 401k withdrawal this year will put me in a higher tax bracket for 2024. I would like to withdraw from various lines of credit to buy this property and then in January make that 401k withdrawal and payoff the credit used for the purchase. So it would be about 4 months of being at about 80% of my credit limit across the board. In the end is it worth it? I have plenty of funds in my 401k I just can't dip in any more this year to avoid that tax jump. It's a great deal and overall renting 1 side pays the mortgage…and yes I'm am going to be hiring TrueBooks as my tax advisor soon! Just curious the thoughts here in using this credit short term. Thanks in advance.