Investment Info:

Single-family residence buy & hold investment in Waynesboro.

Purchase price: $50,000
Cash invested: $50,000

Listed for 75k, offered 50k cash to close in 2 weeks. Had tenant with lease through 02/2021 in place paying $850 and all utilities.

What made you interested in investing in this type of deal?

Low cost to income ratio.

How did you find this deal and how did you negotiate it?

On MLS, through realtor.

How did you finance this deal?

Fund and Grow business credit cards.

How did you add value to the deal?

N/A

What was the outcome?

Still holding, same tenant. In process of cash out refinancing.

Lessons learned? Challenges?

Begin refinance earlier.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Nancy Allison Coldwell Banker in Chambersburg, PA

Nice pickup, @Zachary Coombs !  

Can you unpack your funding strategy here?  DId you use one card with a $50k limit or a few different cards?  How did you specifically get that money to the title company?

Way to go with #2 with nothing down!

@Will Fraser Thanks so much for your question. I’d be happy to do a deep dive into the financials. I had to use a total of 5 credit cards because of the low initial balances. I used Plastiq.com to wire the funds to the title company. (Note on plastiq.com: they are not able to convert American Express to cash transfers). I have used the income from the property to make more than minimum payments on the cards until I finish the cash out refinance (6 months of seasoning required). All but one of the cards had 6-9 months of no interest. The only costs of using this method was five wire transfers (125), plastiq’s 3% fee (1500), and any interest incurred before refinance.

Looking back, it was a great lesson. I would figure out how to get those business cards on my own, rather than pay fund and grows fee. I would begin the refinance process after 3-4 months to close on the six month mark. it took a bit more organization and hands on than I expected to manage the cards and process, but our credit scores have fully recovered and a majority of the inquiries were removed. Likely won’t renew with fund and grow, but we will still have the cards for use and will be able to request a balance increase once payed down some.

Awesome, thanks for sharing, Zach!  This is an interesting approach indeed!  I hope the roll-up into the fixed-rate loan is successful and that you get to rinse-and-repeat this strategy many times!