Putting it all out there....

[Charlsi Kelley]

Good morning! 

Does real estate strategizing keep anyone else up at night!? 

I am going to lay all of my chips out for the world to see here....I need some feedback before taking the leap:

The place we are under contract for: MLS #5377681 (3030 Wilson Ct Unit 3 Denver, CO 80205) A high end town home, 2 bed/2bath, 2 car garage, rooftop deck, Kitchenaid appliances, Mahogany hardwood floors, the works!

We locked in over a year ago at 360k, same unit type sold in jan for 385k and broker says if there are any units left at time of completion, they will list for 410-415k. We literally beat out 90 other people in line waiting to make an offer on our place- so I feel good about that! 

So obviously it is winning in terms of appreciation and equity- however- our concern is cash flow. We think our mortgage will be about 2200 considering we can only afford to put 5%-8% down right now. We feel we could rent it out after 1 year for minimum 2800 per month. It is brand new, and likely won't require any major repairs in the near future, and rental market is strong so I don't foresee any long vacancy stretches.

Another idea I had was utilizing a creative investment strategy to get to that 20% downpayment in order to shrink our mortgage payments for that first year so that we can continue saving as much as we do now with our cheap rent. I was thinking of finding someone to lend us 50k with the understanding that after 1 year, when we cash-out refi- we will pay them back 60k. Is this something that would be attractive to lenders? Is this even legal?

Any advice would be much appreciated! 

-Charlsi