need a strategy to repay a down payment

[Nam Nguyen]

My relative is willing to loan me $25,000 for a $100,000 property.  The remaining $75,000 would be on a conventional loan for 30 years.  The property cash flows $200 per month. 

What strategy would you use to repay the original down payment?  I haven’t been able to come up with anything creative other than to borrow from someone else to repay my relative. Let’s assume the down payment was a 0% loan. 

[Amy Beth]

I would not do this deal for such a slim profit. You would need your own significant income from Work to pay back the relative. It would take you more than a decade to pay back the relative with only the rental income and that is assuming you do not have any maintenance or repair expenses on the property which is unlikely. In fact if you have even one costly eviction or repair you will not even make a profit with only a $200 difference between your holding costs and the expected rent.