45k town house purchase with cc

[Indra H.]

Hello folks,

Im looking for suggestions, i am closing on a townhouse this week. Im paying for it with a credit card. 45k, valued around 65-70k. It is currently rented $850, but could be 950-1000.

Credit card interest rate is3.99% for 12 months, but im looking to refi way before that, the problem is that im self employed and my taxes dont look good at all. My credit is around 810 or so. Any suggestions for such a small loan?

[Chris Seveney]

Risk far outweighs reward.

1. It appears you have zero cash. So what happens when you need to perform repairs or if the tenant moves out

2. Famous last words are it rents for x but I can get y. You won’t get it from the existing tenant as they magically will not be able to afford an extra $100 a month - so if you raise it you will have no occupancy which at end of day neutralizes rent increase

3. If you cannot refinance it your interest rate will be astronomical.

4. Based on economic times - do you anticipate pricing going up or down?

5. When you factor in closing costs to buy and then sell, what is your profits ? 

Also did you consider what is going to happen to your credit when taking $45k on your credit card? It will have a negative impact on your credit and banks will view this as a much higher risk and potentially increase chance of getting rejected for financing