Would you take out a personal loan to buy an investment property?
How do you feel about taking out personal loans to buy investment properties opposed to mortgages? I'm thinking about taking out a personal loan to buy an investment property that produces good cash flow. Is taking out a personal loan less dangerous than taking out a mortgage? Just using this as an example: I went on loopnet.com and found a partial ownership property on sale for $50K in NC (I am not against out of state ownership) and the net income would be a little over $3K a month. I would own the property free and clear, and would pay the personal loan using my income from the property (or my full-time job). To reiterate my situation, I do not have 20% to put down on a house and I am currently working with an agent to buy a condo for myself to live in as I told you (I was pre-approved but didnt sign the mortgage paperwork yet). Should I cancel this with my agent and get a personal loan and go after this investment opportunity instead? Would you ever use a personal loan to buy an investment property free and clear? Does it stop you from taking out more loans in order to buy more properties down the road? If this is a stupid question, that is why I am asking. Because I do not know.