I have been reading Long Distance Real Estate Investing - David Greene, and came across an interesting tidbit of information: Your first 10 (1-4, 5-10) property loans are Fanny Mae insured, after which your loan criteria become more unfavorable (variable rates, stricter credit score requirements etc.).

Think of it from the PM's perspective: if you were them, would you deal with the significant headaches of a C or D area (non-paying tenants, trashed properties, crime, police calls, etc.) for a 10% cut of a single property (probably just a few hundred bucks a month) ...I wouldn't.To make matters worse, the property isn't appreciating (because it's in a low appreciation market, or even a depreciating market), and the tenant pool is primarily made up of people with bad credit, low/no income, and a history of property damage at the previous places they've rented.

But, assuming good credit your rate likely would be 8.%-8.25% but you would have to pay 2-3 points. and you would have mortgage insurance. 

@Ozzy Sirimsi and All: I was wondering has anyone ever used business lines of credit that does not report to personal credit to purchase a rental property cash and then find a lender to refinance out?

Any Tips?

My credit score is between 750 and 760. 

Johnathan - I've used unsecured lines of credit to purchase and rehab properties in a BRRRR strategy before.

I would definitely plan on using credit cards for any purchases when I would go to keep a paper trail.

Any tips or advice please help would be greatly appreciated 

To Peter's credit though, the person I spoke to did disclose it would be about $20k up front.