Buy 2nd home with credit card

11 Replies

I just bought my first house 2 months ago. 750sq ft 1bedroom (layout makes it 2bedroom) in Union City, NJ, 145k, put 30k down, 30yr mortgage for 3.5% rented room for $800/m, total cost PITI+maintenance is $1100. Its my primary residence, so now i almost live for free, equity being built.

I make 90k a year, and now have another 20k ready savings, and just got a new credit card, 15k, for 1 year no interest. 

How can I use this 15k and savings (lets say only 10k to leave some emergency) to buy another property? 

This time it would be an investment property, no lofty goals just something that I can rent, a 1 or 2 bedroom for monthly $150-300 profit. Cash on Cash 7-10% would be nice. 

I know there are lot of area, different locals, but in sum:

how to use my 15k credit card no interest for 12 month

somewhere closeby NYC in Jersey, as things here are super cheap and tenants are through the roof

You will need certified funds for closing at the title company.  This would be either a cashier's check or money order.  You can't purchase either of those with a credit card.  The only way I could think of is a cash advance on the credit card but most interest free cards do NOT allow free interest on cash advances, only on purchases.  Some cash advance rates are upward of 25% so be careful and make sure you read the fine print!  I am hoping that someone else will have info on how to do this because, to me, it just doesn't seem workable.  Good luck! 

@Drew Slew Your idea won't work with the conventional mortgage you listed. The bank would look at your cash advance from your credit card as a second lien or as a loan for the down payment (because it is). If you were going to buy a $35,000 house with your cash and the credit card, that would work, but I've never seen a credit card that gives those terms on cash advances (If it really does, let me know what kind it is!)

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You can send a "gift" through paypal... I think it's a 3% fee. I've never actually done it, but we've got loads of credit on those business card offers that you get as soon as you open an LLC. If it's in the bank, then it's good funds for purchase.

You could do a cash advance on one credit card and then do a 0% balance transfer to another credit card. Some banks will not charge a balance transfer fee and will do 0% interest for a year if your credit is good enough. It will probably hurt your credit if you are using more than 30% of the limit though. There's typically still a minimum payment even with 0% interest so it might be more cost effective just to use equity in another property or take out a mortgage to buy the next property.

If you mean the credit card gave you those 0% "checks", then you write yourself a check. This could possibly be the downpayment of a property. But first you need to shop around to a ton of banks and get their requirements. In 2012-2014, I was able to get mortgages where the bank did not ask where I got the downpayment funds from nor did they care if they had been vested for a ridiculous amount of months. But that's your trick is shopping around for a bank first. I do not think my current bank does this any longer as it was bought-out...then again I haven't asked. It's not BB&T.

@Drew Slew

As @Jassem A. mentioned. You can do a balance transfer from your card. Business credit (backed by a personal guarantee) is another option as it does not report to your personal credit report.

Watch the video below:

He also has other videos on converting credit cardsinto cash and obtaining & using business credit for REI.

You can do a cash advance but it it's usually around a 2% fee. I would suggest you do not do this strategy unless you can pay it all back within your 12 months 0 % period.

Lots of credit unions and some banks do not charge a fee on cash advances and many times will go up to the entire limit. Sometimes the interest rate will be higher for cash advances but not always.

Thanks for all the replies, appreciate it @Ben Dao @Shanel Wiggins @Nicole W. @Jassem A. @Jason Hirko

Yes, the whole issue is its 0% if I buy with it a grocery story the trick is how do I actually use that money without cash advance or anything else where they charge an interest.. paypal gift idea seems interesting