Rental property refinance

[Tamatha Mallard]

Can someone explain to me the best use of an line of credit. I want to use it to acquire a rental. Fix the rental then refinance and pay off the line of credit. Does that make sense?. Will that work?

[Zachary Cummings]

Yes, this is very doable if you have equity in the residence that the line of credit is on. Some lenders allow up to 90% LTV on your primary residence. Just make sure you factor in the payment that will be on the line of credit you will be making until the refinance is able to pay it off, Good Luck!