Purchase/ Down-payment with Line of Credit

[NJRealEstate]

I am a relatively new REI, having worked on a few flips, and completing my first flip actually owning the property. My eventual goal is to own multi unit buildings and hold them for cash-flow. I graduated from college last year and am very tight on cash, however my bank offered me an unsecured line of credit on my business account in the amount of 100-250k depending on what I needed.

I am curiousness about using the Line to either:
1. outright purchase and rehab a home to flip or rent
2. use the money as a down payment for commercial property

Are there any restrictions or difficulty I would have refinancing this money laid out with the line if I had enough equity in the property (hopefully by adding value and re positioning/ upgrading). The line is at a variable interest rate a 2.5% over the prime rate

I did not tell the bank that I would be potentially using the money to purchase investment properties at this point.

Anything I need to be aware of? I have read a few REI books about creative financing however I am not confident that all I read is true, nor do I think I understand the details well enough to feel confident about taking on the debt without a clear exit strategy.
Do I need to tell the bank what I will be using the money for, and can they deny me from drawing on the line once it is underwritten?
What else am I not considering? I have read about others using HELOC to purchase properties, are there differences between this and unsecured business lines?

 

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[Runum]

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Huuf madl.

 

[Rickson9]

Xuamf vjot ci e tvevod mopi us e si-efwepdiecmi mopi? O'n haittoph vji mevvis, cav O fup'v lpux.

 

[NJRealEstate]

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[CashFlowDepot]

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Zua dep emtu hipisevi detj cz hivvoph uqvoupt vjin xjumitemoph qsuqisvoit.

 

[2KidsinUT]

Xovj vjev lopf ug catopitt dsifov, zua tjuamf ci ecmi vu ietomz raemogz gus e mux sevi nusvhehi. ONJU zua tjuamf katv tewi zuas catopitt mopi ug dsifov gus inishipdoit epf catopitt simevif tvagg.

 

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