Using Line of Credit and Credits Cards for BRRRR

[Jonathan Shepard]

If all aspects of a BRRRR deal have been reviewed and appear to work ("all in" budget including holding costs work out to be 70-75% ARV), what are some of the risks or pitfalls associated with funding a deal with a few small lines of credit and low interest credit cards?

I see this being beneficial on one hand because I avoid paying points for hard money but have a similar interest rate as well as having cheaper closing costs because I will be the only one of the deed.

I also see where this could be an issue during the refi due to higher DTI. This also does not seem very scalable but I'm just trying to get some experience at this point.

Thanks in advance for any help or advice.