Over leveraged?
I have an opportunity to purchase an 8-unit in a solid area of buffalo NY. I currently own 3 duplexes and want to make the jump to multi. Long story short, the bank loves this apartment, giving me a 10 year loan, 20 year am with 5 year reset @ 80% LTV and 4.5%. However I don't have the funds for 20% down, so I'm planning to use a 0% credit card offer for $60K to cover it - the repayment terms for the $60k will make payments $900/month for my down payment; and after my note payment ($1744) and then 50% expenses, I'm left with only $100/mo cash flow - a combination of borrowing almost the entire purchase as well as a 20 year note. I can increase rents a total of about $250 fairly quickly - the cap rate is 9.6%; ROI if you count the down payment as my money is about 17.7%. Looking for feedback as the first 5 years or so I'd really only be gaining principal pay down of both my down payment and the bank loan.