Using unsecured personal lines of credit and refinancing

[Ryan Keenan]

Hi BP investors, I have some questions about using a personal unsecured line of credit. I do not have enough money to buy a investment property all cash so I've been thinking about putting 25% down on a value add property and the then taking out a unsecured line of credit to do the rehab. After the rehab is complete and a tenant is in place along with the six month window I will refinance to pull the money out. My question is it difficult getting the refinance after you have used a line of credit in regards to your debit to income? For example let's say you purchased a property for 75k and put 25% down. Next you took a unsecured line of credit of 30k for the rehab. Once complete the property's value goes up and you can now pull money out to pay back the loc. 1) does using a loc hurt your chances on refinancing? 2)Is there any way to tell the bank beforehand of the plan and verify if one can do this? 3) can you use the same bank for the purchase , the line of credit, and the refi? 4) has anyone used this before? 5) thanks for your input!