Purchasing a buy and hold
Hi members, looking for advise on a potential purchase. Here is my scenario: A seller has a 3 bedroom 2 bath condo in New Brunswick NJ that has a retail value of $150k but is willing to sell for $100k all cash. She is will to take $50k now and the balance in 6 months. My plan was to pay now with 0% interest rate credit cards and then do a cash out refi in 6 months. Is there a bank that will do this deal? My credit is good but my cash on hand is small. There is a tenant in place and the unit rents for $1550 per month. Renter pays all utilities. It is a condo with HOA fees of $286, taxes of $4200/yr. Please advise. My other strategy would simply be to wholesale the deal but I would prefer to keep this one if I can get it financed at 80% LTV in 6 months
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I'm no expert, but wouldn't maxing out your credit cards obliterate your credit score? Besides, you'd have to pay that ridiculously high percentage fee on the cash withdrawal on top if whatever interest rate you have. If this is as good a deal as you say it is, why not try a hard money lender instead of credit cards, at least that way the possibility of a refinance might still be an option. Still, I'm not sure?Id buy a property without some good reserves in the bank.