Updated almost 9 years ago on . Most recent reply
Using a personal loan for a down payment
I recently moved out of my personal home and turned it into my first rental property. I am planning buying my first real deal and have looked at personal loans to use as a down payment. I currently have enough cash in the bank to cover vacancy with my current property and a prospective new property, as well as to cover any repairs. I was looking at taking a $20,000 personal loan at 7% APR, which I estimate to be repaid within 8 months, costing approximately $550 in interest. The benefit I see from this is to have my tenants help to pay the down payment as well as the mortgage. Assuming the numbers are right on a potential property, is this a good idea or is it better to save up the cash and keep on researching and networking?