BRRR Financing Question

[Joseph Duenas]

I'd appreciate any help from the forum financing gurus out there. 

I have a contract on a house for $210K.  

Repairs costs are estimated at $50K. 

ARV is estimated at about $360K.

I was thinking to finance the $210K purchase via a mortgage (ARM) and put the $50K renovations on my credit cards. This will have me all in at about $260K.

Once the repairs are done, I was thinking to get the house reappraised (hopefully at $360K) and refinance the house at 75% LTV or $270,000. This would allow me to pay off the initial loan, my credit cards, and give me about $10K cash back. I would then rent the house out for a positive cash flow.

Is there a better way to approach financing this? I'd really appreciate the feedback. Thank you. 

[Jerry Padilla]

@Joseph Duenas

You have a great strategy. If the property is in livable condition you can finance with conventional to start. 

When using credit cards....... Maxing them out can really hurt your credit score. Try to keep balances below 30% of the maximum if possible. A personal loan is another option you could take for the repairs.