20% down with a loan

[Alfredo Chavira]

Hi, I'm wondering if it is illegal or if it is simply not a good idea to get a loan from say Wells Fargo, put it in my savings account and sit on it for a couple of months and then use it to help pay for a 20% down payment on a potential rental property? 

[Michael Hill]

Originally posted by @Alfredo Chavira:

Hi, I'm wondering if it is illegal or if it is simply not a good idea to get a loan from say Wells Fargo, put it in my savings account and sit on it for a couple of months and then use it to help pay for a 20% down payment on a potential rental property? 

 Alfredo, do the math.  Your going to pay on a loan, then use the money to purchase a property (another loan).  Could be very expensive based on interest rates.