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General Landlording & Rental Properties

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Stanford Graves
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BUYING A $30,000 RENTAL PROPERTY ON A CREDIT CARD

Stanford Graves
Posted Oct 6 2019, 18:58

I don't have a large amount of cash to buy a rental property at the current time so that's forced me to get creative. I'm thinking about putting a $30k rental property on my credit card. I will pay 10K cash and put the other 20k on my card. If things go as planned, I'll have a renter and it'll take 1 1/2 to pay off the card if I send in all the money from the rental. ANY THOUGHTS???

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Greg M.
  • Rental Property Investor
  • Los Angeles, CA
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Greg M.
  • Rental Property Investor
  • Los Angeles, CA
Replied Oct 6 2019, 22:35

During this time that you're sending in 100% of the rent payments, who covers property taxes, insurance, updates and repairs, vacancies, late rent, non-payment of rent, etc.

Perhaps you should wait until you are more financially secure to purchase a property?

I'd also like to know what $30,000 property will bring in rent of $1,100 a month. 

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Kaiser J.
  • Rental Property Investor
  • Charlotte, NC
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Kaiser J.
  • Rental Property Investor
  • Charlotte, NC
Replied Oct 7 2019, 07:32

Do not do this. There is no way your rental will generate a return that exceeds the cost of credit card financing. Just be patient and save up. 

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Shane H.
  • Investor
  • Spokane Valley, WA
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Shane H.
  • Investor
  • Spokane Valley, WA
Replied Oct 7 2019, 09:43

I agree with the above posters. Remember that just because you CAN buy something doesn't mean you SHOULD.

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Dennis M.#5 General Landlording & Rental Properties Contributor
  • Rental Property Investor
  • Erie, pa
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Dennis M.#5 General Landlording & Rental Properties Contributor
  • Rental Property Investor
  • Erie, pa
Replied Oct 7 2019, 12:00

Get a line of credit from the local bank before you go the credit card route .

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Doug Smith#3 Creative Real Estate Financing Contributor
  • Lender
  • Tampa, FL
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Doug Smith#3 Creative Real Estate Financing Contributor
  • Lender
  • Tampa, FL
Replied Oct 7 2019, 12:04

@Stanford Graves, I hate to admit it, but I actually did buy a property on a credit card that gave me one-year with no interest. If I didn't have the no-interest period, then I am certain I would not have done it. 

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John Morgan
Pro Member
  • Rental Property Investor
  • Grand Prairie, TX
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John Morgan
Pro Member
  • Rental Property Investor
  • Grand Prairie, TX
Replied Oct 7 2019, 12:57

@Stanford Graves

I’ve had to use the zero interest cc loans for a year and a half to snag two properties. My W2 income helps me pay down these two interest free loans, so I’m fine with doing this. I bought two other properties off either 401k loans or HELOCs. Without these loans, I would have lost out on 4 really good deals. So it’s worked for me! And once the loans are paid off, the cash flow feels great. I have no regrets. Good luck!