Thoughts on using a loan for a down payment
Hello:
I am getting ready to pull the trigger on another rental. After just acquiring a new personal residence, i do not have enough for a 20% down payment.
What are your thoughts about using something like sofi or wells fargo's LOC, etc. to fund the down payment? this would not at all be part of a conventional financing deal. i understand the ramifications there. it would be part of an owner financed or hard money deal where they would pick up the remainder until i could refi into something more favorable. i guess it just boils down to the extra risk in that the property is highly leveraged, right?
let's assume i am not buying it at a steep discount and the property would cash flow a few hundred dollars after debt obligations.
Thank you in advance!