Nova Scotia, Canada. 5-Unit Rental for No $ down.

[Paul MacInnis]

Hi, I've just joined BP and am loving the site! I'm intrigued by many stories and wanted to share one of mine. I am currently attempting to purchase a 5-unit building with no money down. This is not my first property and I am required to put 20% down (175 purchase = 35k down). My plan is to use 35k to secure the property and then immediately refinance the property. The home is worth quite a bit more than purchase price - BUT I'm waiting for an appraiser to come up with the figure. The refinancing can be for 80% of the appraisal, I'm hoping for it to be 220-225k. That would give me a new mortgage of 176-180k and be able to take back the original 35k downpayment (as there would be 36-50k in equity pulled out). I will still have to pay the various transaction fees associated with the deal - legal, etc but I am still hopeful to get the property for $0! I should know about the appraisal by the end of next week - it's been slow to get going through the holiday season.