Deal Structure
I've owned a rental property before and currently have a home I'm doing a rent to own with someone. I've been looking to get another rental property under $40k after repairs.
Some of the properties are mobile homes on brick foundations and some are stick built homes. I've thought of purchasing a property by doing the following below.
Home price: $35,000
Repairs: $10,000
Loan: use a credit card 0% for 12 months with 4% transaction fee. So 4% $45,000 cost $1,800
Down payment: None
Refi: 6 months after repairs and rented
After Repair Value: $70k
Loan Amount at Refi: $50,000
Rent: $600-$750 a month
Cashflow: $200-$350 on 15 year loan terms
Please let me know if you need anymore details. This is a way I've thought of using my credit card to avoid the 20% down payments. I could also do 1.99% for 18 months with the same 4% fee.
I'm looking to get 3 properties so if a 30 year loan will be my best option for future purchases.
Thanks,
Duane